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Oil Ending The Week Down On Demand Fears

COMMODITIES
  • Oil prices are ending the week down almost 5% as demand concerns from ongoing China lockdowns are seen to outweigh lower supply, in particular Russia with April output announced earlier in the week to be down 0.9mln bpd from March at 10.1mln bpd.
  • This has come despite US and Canadian producers not being tempted to profit from high prices, with a small increase/decrease in rig counts respectively.
  • WTI is -1.6% at $102.11 to leave it down -4.5% on the week where it’s ranged from $100.7 to $109.81, now comfortably below resistance at $109.2 (Apr 18 high) with support still formed by the 50-day EMA of $97.37.
  • Brent is -1.6% at $106.62 to leave it down -4.5% on the week. Support is seen close by at $104.65 (Apr 20 low) after which it could open the 50-day EMA of $102.56.
  • Gold meanwhile ends the week sharply softer, -0.9% on the day for -2.2% on the week at $1934.04 as Fed hike expectations drive a surge in Treasury yields (2Y up 26bps on last Fri close), taking away some of the allure of gold. Talks between the UN and Putin could be the next geopolitical trigger point.
  • With the bearish threat remaining present, it sits closer to support at the 50-day EMA of $1927.5 having fleetingly cleared it earlier. Resistance remains the bull trigger of $1998.4 (Apr 18 high).
  • Final mention for European natural gas, -5% today and -10% on the week as the EU has suggested companies could keep paying for it in euros.
Energy BulletsCommodities
Energy BulletsCommodities

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