The softer US dollar has made it easier for Brent to shrug off the surprise contraction in the US economy. Brent remains on course for back-to-back weekly gains, as it keeps its head above the psychologically-important $100/bbl mark.
Oil benchmarks are attempting to halt a series of lower highs and lower lows registered since early June, with prices being pushed into a symmetrical triangle pattern suggesting that a breakout may soon be upon us.
The tightness evident in oil markets, with global demand yet to reach a full recovery even as supply constraints persist, still point to an upward bias for oil prices.
Oil markets will be paying close attention to the outcome of the next OPEC+ meeting, in light of US President Joe Biden’s recent request for Saudi Arabia to loosen the oil taps.
Still, any new OPEC+ deal aimed at further ramping up supplies is likely to be met with market skepticism, considering the supply constraints already evident within the alliance.