With OPEC+ meeting later this week, oil prices are looking more buoyed to start the new week after the rebound on Friday.
The breakdown last week threatened to turn the technical picture to be even uglier but dip buyers stepped back in to at least salvage the situation at the weekly close. Now, WTI crude is up to $111.40 - its highest level since 17 June.
There are a couple of headlines that has been stirring the oil market as of late:
- US EIA says no data coming today on US inventories
- Looks like US oil inventory data is going to be delayed again this week
- Ecuador says its oil output may stop completely in 48 hours
- G7 moving closer to a U-turn on the vow to end fossil-fuel financing
- Macron overheard at G7: Saudi Arabia and UAE barely have any spare oil capacity
- UAE tries to spin the report that it's maxed out of spare capacity
And all of that just adds to the narrative that OPEC+ is almost certainly going to keep the status quo later in the week.
The takeaway from the headlines is arguably that the market remains rather tight and the worst-case scenario, or should I say extremely bullish scenario, is that Saudi Arabia and the UAE are really tapped out. The sense of the word appeals differently to different people in the market but if that's the only thing that they will offer up, it is the only bit of information that market players can work with.
