Free Trial
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.
COMMODITIES
- In the past few months, we have seen that the rise in inflationary pressures has generated strong demand for oil futures, as the commodity has historically acted as the best 'inflation hedge', averaging nearly 2% in monthly returns when inflation is accelerating (since 1983).
- This chart shows the monthly prices of Brent front-month futures in the past 14 years.
- Interestingly, oil has been testing an important resistance this month at 77.80, which represents the LT downward trending resistance and the 61.8% Fibo retracement of the 16 - 115.70 range (2014-2021 high low).
- A break above that level would open the door for a move up to 86.70, which was the high reached in October 2018 when US economy peaked (pre-Covid).
- Even though the uncertainty over the Delta variant has been rising, increasing the probability of a renewed period of lockdown next winter, investment demand could continue to push oil prices higher in the near term.
- On the downside, key support stands at 65.85 (50% retracement), followed by 60.15 (50DMA).
Source: Bloomberg/MNI
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok