WTI crude down 0.9% to close to $68
Oil is not seeing a good start to European trading as price is falling close to the $68 level after having opened with a gap higher at around $69.60 to start the new week.
Hurricane Ida played a role in helping to push oil prices higher but the intensity of the storm is abating and the passing is easing concerns of any major further disruptions to refineries/plants in the US gulf coast.
From a technical perspective though, topside for oil also still remains more limited close to $70 as mentioned here last week. So, there's that to consider as well.
The fundamental story continues to support a higher move in oil in the broader picture but for now, delta variant risks are still posing a bit of an unknown factor. However, the market is slowly acclimatising to that and the risks should abate over time.
Even so, there needs to be a break above $70 to justify any further upside momentum for oil and there likely needs to be some other catalyst for such a push. Otherwise, we may see a bit more of a push and pull before buyers start to reload on their conviction.
Besides the above, keep an eye out on potential OPEC+ headlines that could follow. I'm not convinced of any change just yet but it could be enough to spark some market action later in the week.
