May 29, 2024 23:30 GMT
Crude Lower As US$ Strengthens
OIL
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Oil prices fell as the US dollar strengthened (USD index +0.5%) on higher Treasury yields from a weak auction result and risk appetite deteriorated. There was a slight tick up following data showing a large US crude inventory drawdown.
- WTI fell 0.7% to $79.28 to be down 2.4% in May. It rose off its $78.99 low following the US stock data. It is currently trading around $79.27. Trend direction remains down with initial support at $76.15, May 24 low. Initial resistance is at $80.90, May 1 high.
- Brent is 0.8% lower at $83.53 to be down 3.2% this month. It fell to $83.29 before the API data. The trend condition remains bearish with this week’s gains seen as corrective. Moving average studies are in a bear-mode set up. Initial support is at $80.65, May 24 low, while initial resistance is at $85.89, May 1 high.
- Bloomberg reported a 6.49mn drop in crude inventories, according to people familiar with the API data. Gasoline stocks fell 452k while distillate rose 2.05mn. The official EIA data are released later today.
- The US EIA said that Guyana saw the third-fastest oil output growth between 2020 and 2023 of any non-OPEC member. It also has three exploration projects running.
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