WTI to remain below the $70 mark for the remainder of 2021 – TDS

WTI is trading in the mid-$68/b. Strategists at TD Securities expect the black gold to continue moving below the $70/b mark for the rest of the year.

Sustained move beyond $70/b requires no sudden increases from OPEC+ or Iran

“Based on the lower demand projections due to the new wave of COVID and the production increases by OPEC+, WTI should continue to trade below the $70/b mark for the majority of the remainder of the year. In short, traders will react to the fundamentals which flipped from projected deficits in H2-2021 to modest surpluses moving forward.”

“A drift toward the recent lows of $60-65/b is quite possible on any additional developments which could drive demand lower or supply higher.”

“Any sustained move above the $70/b mark will require more certainty on the demand side and no sudden production increases from OPEC+ or Iran.”