Crude oil price on the Brent benchmark looks to end the week higher as demand pressures continue to fire up prices.
On Friday, Commerzbank analysts hinted at a $75 per barrel price target for the end of the year, as it expects demand to outstrip whatever supply increases are brought to the market by the OPEC+ alliance. Commerzbank sees OPEC’s production to rise at roughly the same pace as oil demand until the end of 2021, leaving the market undersupplied. Commerzbank sees the spread of the coronavirus delta variant as a downside risk to its price prediction.
Brent crude looks set to end the week marginally higher, after three days of gains enabled it to overcome the slump seen on 19/20 July.
Technical Outlook for Crude Oil Price
The V-shaped recovery on the daily chart has taken the price above the 73.34 resistance. Price is likely to end the week above this level. Further upside may follow a slight pullback and bounce off this level, targeting 75.52. 77.93 and 80.00 remain the price levels to beat to re-establish the uptrend.
On the flip side, a decline below 73.34 primes Brent crude for a further drop towards 71.44 (8 March high) with 70.00 and 67.74 (the week’s low) serving as potential targets to the south.