Crude Off Intraday Lows As Correction Stalls During APAC Trading

Oil prices are off their intraday lows to be steady during the APAC session. US yields are higher and the USD index is up 0.1% to be +0.7% on the week.

• WTI fell just below $79/bbl earlier but found support there. It reached a low of $78.95 but is now trading around $79.31, just off the high of $79.49. Support is at $78.69, August 2 low. Brent has held above $83 with the intraday low at $83.05. It is now trading around $83.47, close to the high of $83.63.
• Risk appetite has been weakened by lacklustre growth in China and ongoing problems in the property sector, and a hawkish Fed. This is also impacting commodity markets. Equities are down across the region today.
• If the correction continues, Saudi Arabia is likely to step in again to try and support prices. A fall in US inventories to their lowest level since early January suggests that supply is tightening.
• Later US jobless claims and August Philly Fed print.