Oil headed for the biggest weekly decline since mid-March as a resurgence of Covid-19 in some parts of the world and uncertainty around the prospect for an OPEC+ deal to boost supply clouded the short-term outlook.
Futures in New York extended losses to trade near $71 a barrel after closing at the lowest level in a month on Thursday. The fast-spreading delta variant has swept across the globe, leading to renewed restrictions and crimping fuel demand. The United Arab Emirates is nearing a deal that would give it better terms and allow OPEC+ to boost output in the coming months, although talks are ongoing with Saudi Arabia and details remain scant.
Overall the market is bearish with a downside breakout likely sending trade to attack a 68.50 low. A close under 69.90 is bearish. Current corrective rebounds trapped by 73.00 will maintain bear forces. However, a close over 73.10 confirms the start of a reversing upturn.