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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.
OIL
After declining over 4% on Wednesday to be down around 13% on the week on the back of deteriorating risk appetite and recession fears, oil prices slumped early in the APAC session with WTI reaching a low of $63.64. But with risk appetite stabilising oil prices are now off these lows with WTI up 0.5% to $68.98/bbl and Brent +0.7% to $72.85. The USD index is down 0.3% today.
- Oil prices are off of their intraday highs of $73.32 for Brent and $69.32 for WTI. Brent broke through $72.34, the March 24 low, on Wednesday which has opened up key support at $70.10, the March 20 low.
- It is unclear why WTI oil prices plunged at today’s open and there is speculation that it was due to the unwinding of speculators’ bullish positions, human error, algorithmic selling or panic selling, according to Bloomberg. Trade at that time is usually thin and Bloomberg is reporting that over 3000 June futures contracts changed hands in the fifth minute of the session. Brent didn’t follow the move when it opened a couple of hours later.
- Later the ECB meets (see MNI ECB Preview - May 2023) and is expected to hike rates 25bp. In the US, there are Q1 unit labour costs, March trade and April Challenger job cuts data.
WTI USD/barrel
Source: MNI - Market News/Bloomberg
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.
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