Crude Futures Extend Losses

Crude futures are lower in Asia-Pac trade, extending Friday's decline. WTI is down $0.76 from settlement levels at $67.88/bbl, Brent is down $0.74 at $69.85/bbl. WTI and Brent crude futures continues to fade as the recovery off the Monday low ran out of steam. The weakness on Friday was accelerated by a sharp downtick in the Uni. of Michigan sentiment survey, which dropped 11 points. A drop of that size has only been seen on a handful of occasions: the depths of the COVID crisis, the 2008 financial crisis, Hurricane Katrina and the 1990 Kuwait crisis. Data from China was weak today, with industrial production, retail sales and FAI all missing estimates. WTI crude futures hold south of the 50-day EMA at $69.98, which switches from support to resistance. This reinitiates the downside argument, opening $65.01, Jul 20 low and the key support.