At the same time, due to the increase in the number of cases of the delta variant of the new crown virus, new travel restrictions have been implemented in various places. Vikas Dwivedi, an oil and gas economist at Macquarie Capital, also said that due to the epidemic, the mobility of road and air traffic in some areas has decreased significantly. We may see this domino effect, which will lead to the rest of this year and beyond. The demand for oil has fallen.

On Tuesday (August 10), international oil prices rose by more than 1%, partly reversing the decline recorded when oil prices hit a three-week low on the previous day, but people are worried that the increase in new crown cases and travel restrictions will weaken fuel demand, and restrictions are expected There is room for a rebound in the oil market. NYMEX crude oil futures rose 1.30% to 67.72 US dollars per barrel; ICE Brent crude oil futures rose 1.39% to 70.00 US dollars per barrel.

Both cities set a new low since July 20 overnight, reaching US$65.15/barrel and US$67.60/barrel respectively. The surge in COVID-19 cases is dimming economic growth and overall consumption prospects. Oil prices have fallen continuously recently, but they received strong buying support near 65 on Monday, showing that the bulls are still strong, although the bears are still taking the initiative. The delta virus is raging wildly at the moment, causing a heavy blow to oil prices. Intraday oil prices are currently rising by nearly 1%, but it is still doubtful whether the subsequent increase can be maintained.

From a technical perspective, oil prices have formed a double bottom around 65 and RSI rebounded from a low level, which will help the bulls gain a firm foothold. It is difficult to judge short-term oil price trends, and investors are advised to stay on the sidelines.

The upper resistance level focuses on the March 8 high of 67.98, the 50% retracement level of 71.01, and the 61.8% retracement level of 72.43.

Below support levels focus on the low of 65.01 on July 20, the high of 63.81 on February 25, and the low of 61.56 on May 21.

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