Free Trial

Benchmarks A Touch Above Wednesday Lows, China Oil Imports Drop

OIL

Brent crude sits modestly above Wednesday session lows, last near $74.70/bbl, which is +0.55% up for the session so far. Overall ranges have been tight though ($74.39-$74.74). For WTI, we were last near $69.80/bbl, have followed a similar trajectory to Brent (+0.60% higher for the session so far).

  • China Nov trade data showed crude oil volumes down -13.3% m/m/ We also saw the first y/y declines since April of this year. This may reinforce demand concerns around the China outlook.
  • Broader demand concerns and skepticism around OPEC+ supply cuts have been a key driver the recent down move.
  • Analysts at Citi stated that oil's sell-off may prompt OPEC+ to call an emergency meeting in a few weeks (see this BBG link).
  • In terms of levels, Brent is through various supports, including $75.07 (76.4% retrace of May 4 – Sep 15 bull run) to open $73.50 (Jul 6 low). For WTI, $69.09, the Jul 3 low, is in focus.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.