Crude Nervous About Demand Again

Oil prices are down today and WTI has broken through yesterday’s low but found support there. Disappointing data from the US over the last few days has reignited demand concerns following the boost to prices from OPEC’s latest output cut decision. The USD index is higher again today.

• Oil prices have been volatile during the APAC session but have been trading in a range of less than a dollar. Crude bounced around the time of the RBI’s announcement that it was on hold after 6 consecutive hikes. Brent is currently down 0.4% to $84.56/bbl after reaching a low of $84.05. WTI is down 0.6% to $80.11 after an intraday low of $79.67. Both are now around their 200-day moving averages.
• The only US data of note today are the jobless claims and Challenger job cuts for March. The Fed’s Bullard will discuss the economic outlook later. There is also German IP and Canadian employment. The key release is Friday’s March US payrolls, which are expected to post a 235k rise with the unemployment rate staying at 3.6%.