Oil prices have been going up above $76 per barrel, moving around $72-$77.20 per barrel this week.
Around last week’s abandoned meeting of the Organization of the Petroleum Exporting Countries and allies (OPEC+) – with no indication of when a new talks might be set – the oil price uptrend is expected to remain bullish.
Oilprice.com editor Julianne Geiger said: “Oil prices are holding firm in light of the postponement of the abandoned OPEC+ meeting, and sentiment remains cautiously bullish, particularly since the failure to strike a deal means no oil output increase for the time being.”
Bloomberg, meanwhile, reported that: “OPEC+ abandoned its meeting without a deal, tipping the cartel into crisis and leaving the oil market facing tight supplies and rising prices”.
The global financial media company said: “Oil rose to the highest level in more than six years in New York after OPEC+ failed to agree on a production increase. It was also stated that […] unless an agreement can be salvaged, OPEC and its allies won’t increase production for August.
“That will deprive the global economy of vital extra supplies as demand recovers rapidly from the coronavirus pandemic.
“The global market has tightened significantly due to the robust rebound in key energy consumers such as the US and China, which is driving an increase in fuel demand and draining stockpiles built up during the Covid-19 pandemic.
“The International Energy Agency last month urged OPEC+ to keep markets balanced as worldwide demand accelerates toward pre-virus levels.”
Technically, oil prices are moving in a major uptrend towards $80 a barrel with strong momentum in a bullish trend.
Therefore, for this week’s trading recommendation, investors should follow the trend and be looking for an opportunity to buy oil from the price of $72 per barrel, placing a take-profit function at $77 per barrel.