Oil struggles after OPEC news
Oil initially fell on the news of a Saudi-UAE deal then rebounded above $75 before falling back below $73. Late in the day there was a report that Iraq now wants to re-base its supply and that will open a can of worms.
Interestingly, at last August oil is down $2.16 but the backwardation in the market has narrowed with August 2022 down $1.22 with a more-or-less linear path between. Today's agreement (if finalized) means more oil in August but raises the likelihood of a tighter market in a year.
Technically, the break above $75 yesterday looked good but those hopes were crushed with today's decline and now a top or period of consolidation is more likely.
