Technical and fundamental view of WTI

Oil prices will probably not exceed $70 a barrel, Oman oil minister said, adding that he considers prices to be fair.

"I think that for the rest of this year, prices will stabilize around $70 a barrel," said Mohammed bin Hamad Al Rumhy.

As for OPEC +, the agreement continues to work to stabilize markets, with prices currently around the average expected value of $70, although the US is criticizing rising prices. Prices are also supported by the US decision to re-sanction the main oil producer from OPEC Iran, which will stifle the oil industry and restrict supply, which may lead to price increases.

Technically, the price went back into the upward channel but failed to pass over the right shoulder of the formed Head And Shoulders. It seems that $70, both fundamentally and technically, will be a key level. If we look at the indicators, 50 and 200 SMA remain biased, and the CCI pair, 14 and 50 are above 0, indicating that the trend remains.

Given the calm tone that comes from the Middle East, the price of oil this week will depend entirely on US oil reserves, which we expect on Thursday and the strength of the dollar. If the US Energy Administration on Thursday publishes increased oil reserves, I expect the price to fall, and in the medium term to remain in broad consolidation between $65 and $70 a barrel. With less oil reserves in the United States, I expect a breakthrough in the upward direction, then testing the tops around $75/$76 a barrel.

Source: CNBC

Original post: Oil prices are unlikely to rise above $ 80 this year, Oman said

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