Brent Tracking Higher For The Fourth Straight Week

Brent crude has mostly tracked higher in the first part of Friday dealings. We were last around $80.25/bbl, slightly below session highs near $80.50/bbl. We are ~+0.70% firmer versus Thursday NY closing levels. At this stage we are tracking modestly higher for the week, +0.48% if current levels continue to hold. This would be Brent's fourth straight week of gains if realized. For WTI, we hold near $76.30/bbl, with the benchmark tracking slightly better for the week relative to Brent (+1%).

• At the margin today, further headlines around efforts to boost China consumption of both household electronics and automobiles has likely helped oil sentiment. Although other commodities, such as iron ore, are painting a less upbeat picture for the session.
• Otherwise, it is a familiar supply/demand backdrop for markets. ANZ has stated there is increased evidence of reduced supply from both Saudi Arabia and Russia. The bank suggests ship tracking data points to a 400k drop in Saudi supply through the first half of July, while Russian shipments were the lowest in 6 months for the same period.
• For Brent, early July highs rest near $81.80/bbl, while in the past few weeks we have spent little time sub $78/bbl. Note the 200-day EMA is close to $82.25/bbl. On the downside, the 100-day EMA is back near $78.63/bbl.