Oil dropped towards $66 a barrel on Thursday to its lowest since May, pressured by concerns about weaker demand as COVID-19 cases rise, a stronger U.S. dollar and a surprise increase in U.S. gasoline inventories.
Circulation of the Delta variant in areas of low vaccination is driving transmission of COVID-19, the World Health Organization said.
The market is short term bearish and yesterday’s break leaves trade poised for follow through selloffs. A close under 61.76 warns for a wash towards the 60.58 May low. Only a close over 67.77 stops the downturn and signals for a retracement to 70.00 resistance.