The price of WTI crude oil fell 0.6% during the day, to $ 67.14
After a sharp drop last week, oil prices have recovered well in the first two days of this week, as the broader sentiment to risk has also improved; also helped the softer dollar.
This has shown that oil has risen from its lowest level in May to return above $ 67, but we can see that the rise is ahead of the 100-day moving average (purple line).
This is the main technical level to monitor at upcoming sessions to see if buyers can open the next shoulder in the oil upside down, with further resistance then: $ 70.
At the moment, the problems with the delta variant are still an oil threat, but if anything, they are likely to be just a hiccup, as global virus restrictions should continue as vaccinations begin to pick up in the coming months.
China also appears to have halted its latest local outbreak quickly, helping to allay concerns about a long-term impact on consumption and oil demand.
Thus, the broader outlook for oil next year remains relatively unchanged, as the market is likely to remain tight and support higher prices in general.
However, the general mood towards the pandemic and the delta variant is likely to keep oil growth limited in the short term, but as the market begins to take a convincing turn in the fight against the virus, there is room for oil to go well beyond this level. .
Currently, the dollar and Jackson Hole are other important factors to consider, but most likely Powell & co. is not likely to break the risk party this week.