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See oil locked in $70-$80 per barrel range for foreseeable future, says Fat Prophets’ David Lennox

There is a buzz in the energy space where crude oil prices have declined but natural gas prices continue to rise. To decode all this, CNBC-TV18 spoke to David Lennox, Analyst at Fat Prophets.
Talking about the volatility seen in crude prices, he said, “Volatility has been quite extended in the oil price, probably for the last week or so. That is primarily on the back of the fact that traders are now looking over their shoulders and watching what's happening with the COVID Delta variants. And of course, you only have to go back to early last year when we saw what happened in the midst of the pandemic, and what that did to the oil prices.”
“So, traders there have been very cautious. And we are also well aware that OPEC is now winding back its cuts. So from an oil price perspective, all the news has been on the negative side, and hence we've seen the oil price, react accordingly,” he added.
When asked about the outlook for the oil price, he said, “We thought that the latest rally would have pushed it up towards $80 per barrel. We got relatively close to that in the high 70s and then it has pulled back. We'd have to suggest the world get some control over the COVID Delta variants with vaccines, then perhaps we will see a stronger rally in the oil price again. But at this point in time, we expect it to really lock it into that range of between $70 and $80 per barrel for the foreseeable future."
For the entire interview, watch the accompanying video