Crude Lower On Higher US Yields & China Worries

MNI (Australia) - Oil prices fell on Monday driven by concerns regarding China’s economy given the problems in the property sector and higher US yields/USD. This was accentuated by thin summer trading. A swathe of domestic data for July is released at 0300 BST. The USD index rose 0.3%.

• WTI fell 0.9% to $82.47/bbl and has started today slightly lower at $82.39. It found support at $82 with moves below short lived. It couldn’t sustain breaks above $83 either. It reached a low of $81.76 and high of $83.20. Resistance is at $84.89, August 10 high, and support at $78.69, August 3 low.
• Brent fell 0.7% to $86.18 after a low of $85.50 and high of $86.71. It found support at $85.50 but struggled to hold breaks above $86.60. Resistance is at $88.10, August 10 high, and support at $82.36, August 3 low.
• The US crude prompt spread continues to point to tight conditions in the market.
• There has been progress in talks on improving Iran-US relations, which if successful would mean increased Iranian oil shipments.
• European natural gas prices rose only 0.3% despite Australia’s Fair Work Commission allowing a strike vote to go ahead.