The WTI Oil Price has maintained its price above $70 since mid-June until the price crossed below $70, reaching $65.24 in July. There have been rising cases of Covid-19 in some countries, which has resulted in some countries going back to lockdown. The Delta Variant of Covid-19 has been reported to be spreading like wildfire.
$CL’s price peaked this year at $76.91. The last time price of crude oil reached $76.91 was October 2018. The global lockdown in 2020 made the price of Crude Oil fall to negative prices. Could it be that the increasing cases of Covid-19 across the world are responsible for the fall in the price of crude oil? Only time will tell, with some countries are re-entering another phase of lockdown.
Despite vaccines being administered, many countries are back to lockdown. Full-time jobs lost in 2020 were around 400 million. Many economies are yet to recover from the challenges faced during the lockdown. Palliatives were distributed to citizens in developed countries, while underdeveloped countries faced the reality of life as many people starved. The world cannot afford another lockdown and there might be an increased number of depressed people if another lockdown is introduced globally.
RSI shows 3 different cases where the price of crude oil has been overbought in June 2021. This could be a strong indication of a possible reversal to the strong support level of $57.82. However, this month of August has already started on a bearish note with two bearish daily candlesticks.