The West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices staged a brief sell-off on Monday and inked in an intraday low of $39.73 before rebounding.
The prospect of higher OPEC+ output in August continues to keep the market guessing direction.
Fuel demand growth keeps the bulls at bay as a fresh wave of COVID-19 infections around the world sparks tighter lockdowns just as major producers ramp up output.
The U.S. count for new confirmed cases of COVID-19 continued its march toward 5 million, with the death toll reaching 155,000, as White House coronavirus task force coordinator Dr Deborah Birx warned that the pandemic had entered a “new phase.” Birx’s warning came after President Trump continued to push his belief that the increase in cases was only a result of increased testing.
He tweeted over the weekend that Dr Anthony Fauci, his administration’s top infectious disease expert, was “Wrong!” for suggesting the U.S. failed to properly respond to the outbreak, while other countries did.
New COVID-19 cases reached 4.69 million in the U.S., with the death toll rising to 155,124, according to data aggregated by Johns Hopkins University.
Nearly 1.5 million people have recovered. The OPEC+ producer bloc will pump about 1.5 million barrels a day more in August than in July.
From the technical standpoint, due to the overnight decline, $41.50-80 is still expected to serve as a short-term cap with the $36.00-45 support remaining on the radar, with the $34.00-15 seen beneath.
Conversely, a close above $41.50-80 (New York) could initially put $46.00 on the radar for the bulls.