Crude Down Again As Supply Disruptions Ease

Oil prices are down around 0.9% during APAC trading today as output at a Libyan oil field resumed and expectations of further Fed tightening firm. Prices were trending lower before the mixed activity data from China but have been moving sideways since then. The USD index is flat.

• WTI is down 0.9% to $74.75/bbl off the intraday low of $74.61. It reached a high of $75.14, but hasn’t been able to hold breaks above $75. Brent is 0.9% lower at $79.16 after a high of $79.56 and low of $79.02. $79 is providing support.
• Annual Q2 China GDP disappointed as well as retail sales but IP was stronger than expected. Also apparent June oil demand was 14% higher on a year ago, according to Bloomberg. China is the world’s largest oil importer.
• Higher crude prices in the last week have meant that the Urals crude price has risen above the $60 price cap, which is likely to complicate the purchase and shipping of Russian oil.
• Today is quiet with no Fed speakers but there is a pre-recorded welcome from ECB’s Lagarde and Panetta and Lane speak. On the data front, there is only the US Empire manufacturing index for July, which is expected to decline.