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Crude Oil Eyes 20-Day EMAs On Risk-Off

COMMODITIES
  • Crude oil prices have slipped -2.5% amongst broad risk-off sentiment and in China, Tianjin’s Binhai put another area under lockdown.
  • Japan also announced plans to sell 4.7mbbls of crude from national oil reserves in June to fulfil its 15mbbls IEA commitment, whilst EIA data in the US were in line with APIs (crude production back up after a surprise fall last week and crude stocks falling), which saw a continuation of trading lower.
  • WTI is -2.5% at $109.58. The slide on the day sees it move nearer to support at the 20-day EMA of $106.17, clearance of which would open $102.00 (50-day EMA).
  • Brent is -2.43% at $109.2, close to the 20-day EMA of $108.26 after which it would open $101.30 (May 11 low).
  • Gold is +0.17% at $1818.18 supported by haven flows. It remains vulnerable, with support eyed at $1787.0 (May 16 low) whilst resistance is $1858.8 (May 12 high).
  • The North American Electric Reliability Corporation warns that a vast swath of North America from the Great Lakes to the West Coast is at risk of blackouts this summer as heat, drought, shuttered power plants and supply-chain woes strain the electric grid – BBG.

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