Crude oil price was a tad lower on Friday after warnings from the International Energy Agency (IEA) that demand for crude had stalled. The IEA issued the warning on Thursday, triggering a slight selloff that entered the second day on Friday. The organization says that the spread of the delta variant of the coronavirus is reducing demand for crude oil.
Data from the IEA showed that demand fell by 120,000 barrels per day in July, putting demand figures on course to stay below the H2 2021 forecasts by as much as 500,000 barrels per day. This also puts the previous estimates by OPEC Secretary-General Mohammed Barkindo of a supply shortfall of 6 million barrels per day in jeopardy, leaving the OPEC + alliance virtually out of options.
Crude oil price is down 0.34% as of writing.
Technical Outlook for Brent Crude
The redrawn trendline continues to be the reference point for bulls, who are working to reject attempts to break down the critical support just ahead of 70.01. The intraday rejection preserves this trendline.
Bulls would need to increase momentum from the bounce to attack the nearby resistance at 71.44. A successful break opens the door to move towards 73.34, with 75.52 and 77.93 serving as the immediate upside targets.
On the flip side, a collapse of the trendline immediately puts 70.01 at risk. If the support at 70.01 collapses, the 20 July/9 August low at 67.74 becomes available. A further decline in prices brings 66.81 and 65.95 into the picture. Additional support at 64.26 lies outside of the picture for now.