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Crude Nudges Lower Whilst Gold Takes Another Step Nearer Support

COMMODITIES
  • Crude pulls back from highs seen last week as market focus turns to oil demand growth in China with concern for a worsening property sector ahead of official data released this week. Further, a push higher in Treasury yields and USD acted as a headwind for risk assets.
  • Crude managed money net long positions remain stable, but diesel positioning continues to increase according to Friday’s CFTC data. The combined net long positions for Brent and WTI decreased slightly from the 15 week high seen the previous week, by -6k to 397k. ICE Gasoil net positions extended the recent gains up to the highest since March 2022 and Nymex diesel the highest since Feb 2022 amid tight global diesel markets.
  • Crude in floating storage that has been stationary for at least seven days fell by 4.2% last week to 99.67mn bbl as of 11 August.
  • WTI is -0.7% at $82.57 and keeps within technical ranges with resistance at $84.89 (Aug 10 high) and support at $78.69 (Aug 3 low).
  • Brent is -0.6% at $86.26 and keeps to technical ranges with resistance at $88.10 (Aug 10 high) and support at $82.36 (Aug 3 low).
  • Gold is -0.3% at $1908.69, coming under pressure from the aforementioned FI sell-off and US dollar strength. The yellow metal touched a low of $1902.78 to take another step closer to support at $1902.8 (Jul 6 low) before bouncing as Treasuries pared losses and the USD index pulled back off highs.

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