FXStreet reports that Bart Melek, Head of Commodity Strategy at TD Securities, discusses WTI oil prospects.

“OPEC+ kept to its widely expected plan to increase production in July, as the Saudi led cartel sounded a bullish note on the global oil demand recovery. Given demand is projected to grow by over 5 million b/d in H2-2021, there will likely be a considerable deficit during the next six months. Since the OPEC+ planned supply will not keep up with demand growth, it could be argued that the producer group will likely increase production once these risks are mitigated. But any supply increases won't be announced until the Iran production issue has clarity.”

“We expect that the global oil market will remain in a sizable deficit over the near term, which is price supportive. As such it is reasonable to say that WTI will likely push through the low $70s/bbl, but won't surge much higher on a sustained basis, as currently sequestered OPEC+ capacity gets redeployed and Iran increases output.”