Oil rebounds to settle at $107.62 but still finishes lower for the second week in a row

WTI crude oil climbed $3.35 to settle at $107.62 while Brent ended the week at $113.12.

Both are down from last Friday’s close and this is the second consecutive week of declines, but this follows a streak of seven consecutive weekly gains.

Overall, Crude has been right in the middle of the range since the outbreak of war in Ukraine and bulls should be encouraged by that given recession fears, OPEC+ increase and the release of the SPR.

As for OPEC+, they will meet again on Thursday but a report this week citing five sources indicated the status quo. A bigger question is what happens beyond August, when the planned increases run out. Nigeria has by-produced but said it hopes to get its oil online quickly. Libyan production is inconsistent. Hopes for an end to the Iran nuclear deal are almost non-existent.

For me, the dominant feature on the chart is the series of higher lows which is intact as long as crude remains above $95. Buyer interest today shows continued tension in the physical market, but a sharp economic downturn could reverse this trend in the coming months.

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