Oil prices broke through key support levels on Monday, July 19, plummeting over 6% for the first time since March. As a result, Brent retreated 6.2% to $68.16/bbl, and WTI slid 6.7 % to $66.31/bbl.
The market was spooked by a surge in Covid Delta cases across the world, which could hurt oil demand. Furthermore, oversupply fears were fueled by dollar strength and the flight of investors from risk-sensitive assets, including oil futures.
With Brent trading just above $68/bbl and WTI around $66/bbl, the crude oil benchmarks currently look heavily oversold and in correction mode, with Brent gaining 0.70% and WTI advancing 0.82%. Our Brent price forecast for today is in the range of $68-69.5/bbl.