Crude Continues To Range Trade As Demand And Supply Factors Balance Out

Oil prices are lower during APAC trading as the USD index is up 0.1% and Treasury yields are higher after stronger-than-expected US PCE inflation on Friday. Crude rose over 1.2% on Friday and today WTI is down 0.3% to $76.10/bbl and Brent -0.3% to $82.88, both are close to intraday lows.

• Brent reached a high earlier in the day of $83.51 and WTI of $76.75. Both are sitting just under the 50-day simple moving averages. Both are above support levels of $80.40 and $73.80, the February 23 lows, respectively.
• The market continues to be concerned that Fed tightening will result in a US recession and weigh on demand for oil but it also remains optimistic about increased needs in China, resulting in range trading. An unexpected stoppage of oil from Russia through a pipeline in Poland also provided recent support to prices but Poland has said it was prepared for this eventuality.
• Later the Fed’s Jefferson discusses inflation and US January durable goods orders data are published. Headline orders are projected to decline 4% m/m with the core down 0.1%. There is also the EC’s February survey.