Crude Down But July Was A Very Strong Month

Oil has unwound almost all of Friday’s gains in the APAC session. It is down around 0.5% with WTI at $80.14/bbl, close to its intraday low at $80.13, but holding above the important $80 level. Brent is 0.6% lower at $83.93, having only recently broken below $84. The USD is up 0.2%.

• Crude initially rose on the better-than-expected China manufacturing PMI but after WTI reached $80.57 and Brent $84.38 prices have been declining since as the composite PMI disappointed. This is despite Goldman Sachs saying that demand is at a record high. Measures to boost China’s consumption are scheduled to be announced later today.
• Brent is currently up 11.5% in July and WTI +13.3% as tighter supply and improved demand optimism have driven the rally this month.
• The Fed’s Goolsbee speaks later and the senior loan officer survey is published. The July MNI Chicago PMI and Dallas Fed surveys print. Euro area Q2 GDP & July inflation are also released. Friday’s US non-farm payroll report is the key event for crude this week.