Free Trial

Crude Futures and Gold Pull Back After Clearing Recent Resistance Levels

COMMODITIES
  • Crude futures have edged out small declines after some limited two-way trade today, ultimately consolidating Friday’s gains. Tight supplies and low stocks continue to support crude markets whilst a weaker US dollar is adding to the price support.
  • The near-term crude option put skews are holding steady today but longer term spreads continue to turn more bearish amid ongoing concern for future oil demand growth and uncertainty over OPEC+ supply targets into next year.
  • Crude managed money net long positions rose to a six month high with WTI positioning the most bullish since June 2022 according to CFTC data released on Friday. The combined net long positions for Brent and WTI increased by +101k to 452k.
  • The Libyan oil ports - Es Sider, Ras Lanuf, Brega and Zueitina – remain shut until at least Tuesday after a severe rainstorm hit the country's eastern region over the weekend, leading to flooding, according to shipping agents.
  • WTI is -0.3% at $87.22 off a high of $88.15 to clear $88.08 (Sep 6 high) and re-open the round $90.00.
  • Brent is -0.1% at $90.56 off a high of $91.45 to clear $91.15 (Sep 5 high) and open $92.91 (Nov 17, 2022 high, cont).
  • Gold is +0.15% at $1921.97 with only limited gains considering a sizeable -0.5% decline in the USD index, sliding back after quickly reversing a clearance of technical resistance at $1930.5 (50-day EMA). A more concerted push is required to open a key resistance at $1953.0 (Sep 4 high).

To read the full story

Close

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.