The oil price has gone well this week. From 38.10 Dollars Friday evening last week, US WTI oil managed to cross the 40 Dollar mark the day before yesterday and yesterday. Today, as it is a holiday in the USA, the market can hold on to the 40 Dollar mark. In the big picture (WTI oil price chart since February) you can see the strong price increase from May to mid-June. Since then, however, stagnation has prevailed.
Let us put it this way. It seems at the moment that there is a disagreement in the market. What should prevail? The good mood about the global economic upturn, and the resulting increase in demand for oil (see for example here)? Or will the fear of another shutdown win next week and pull the oil price down? Because from the USA you can currently hear new horror numbers of new corona infections every day. Yesterday alone there were more than 10,000 new cases in Florida alone.
The good mood that prevailed this week could evaporate next week when new record levels of infections are reported in the press after the big holiday weekend in the USA. On the positive side on the oil front this week, the main news is that oil inventories were down 7.2 million barrels from last week. This has also supported the oil price well in the last two days. What is going to happen next week? Unclear!