Oil Prices Under Accelerating Pressure

A handful of bearish factors are driving oil prices lower, with both WTI and Brent set for a third successive weekly loss.

While crude prices have been relatively range-bound recently, hovering within the $80-85 per barrel range, they are expected to suffer their third weekly decline in a row. Yet, beyond the retreats in the futures markets, several trends point towards a further weakening in crude.

Biden’s Administration is expected to take a decision on further SPR releases in the upcoming days. In addition, demand prospects have soured a bit lately as OPEC cut its Q4 2021 demand forecast by 330,000 b/d as high energy prices and inflation hamper economic recovery.

A strengthening U. S. dollar is putting additional pressure on crude. Against this context, the Brent global benchmark traded around $82 per barrel, whilst WTI was assessed around $80.5 per barrel.