WTI loses 3% below $ 70 after OPEC + agreement and before stock market drop

• The WTI is under pressure after the OPEC + agreement and due to the fall in stock markets.
• Delta variant concerns continue to weigh on risk appetite.

El WTI (Nymex futures) is accelerating its decline at the start of the week, losing more than 2.5% on Monday. The price fell below $ 70.00 and reached $ 69.63, the lowest since June 10.

The The main driver behind the fall in oil since its peak in years was after the agreement reached between the Organization of the Petroleum Exporting Countries and its allies (OPEC +) over the weekend on oil production policy. The confrontation between Saudi Arabia and the United Arab Emirates (UAE) ended after both sides together with other OPEC + members agreed to increase the supply of oil by 400 thousand barrels per day (bpd) starting in August.

Another negative factor, is the growing concern about the Delta variant of COVID-19 and its impact on the nascent global economic recovery. Stock markets in Europe are losing more than 2% and Wall Street futures point to a negative open.

Despite the sale, US banking giants such as Goldman Sachs and Citibank continue to maintain a bullish outlook on crude prices in the near term. The next relevant data will be that of oil inventories to be published later.

Technical levels