Crude Futures Bounce From Closing Lows

Crude futures are slightly higher in Asia-Pac trade on Thursday, picking up from closing lows on Wednesday. Major benchmarks are down almost 8% from the start of the week. WTI is up $0.26 from settlement at $68.41/bbl, Brent is up $0.020 at $70.58/bbl. The fall yesterday came as US DoE inventories unexpectedly rose and a hawkish set of comments from Fed officials. The latest declines have benchmarks through support levels, WTI now has support at $65.01/64.60 the low from Jul 20 / 76.4% of the May 21 - Jul 6 rally, Brent has support at $66.91/43 the July 20 low and the bear trigger. Sentiment in China has been broadly neutral today, stock markets treading water after losing ground earlier this week. In terms of demand concerns remain that the delta variant will affect the outlook, CNPC warned earlier of a 5% decline in short term oil demand.