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Free AccessCrude Oil Nudges Lower With China Demand
- Crude prices edged down on the day on an uncertain global demand outlook after weaker than expected stimulus measures in China are weighed against tighter supplies amid OPEC+ cuts, with Eurasia Group seeing the former putting a ceiling for crude of about $90/bbl.
- In supply news, Iraq has not reached an agreement with Turkey on Tuesday to allow an immediate resumption of oil exports via the Turkish port of Ceyhan. US seaborne crude exports in August are set to reach the highest since March to average about 4.2mb/d compared to 3.8mb/d in July. Norway’s oil and natural gas production recovered last month with oil output rising to the highest level in four months, NPD data show.
- WTI (V3) is -0.7% at $79.52 but doesn’t yet test support at $78.33 (Aug 3 low). Resistance remains at the bull trigger of $84.16 (Aug 10 high).
- Brent (V3) is -0.6% at $83.95 but above support at $82.36 (Aug 3 low). Resistance remains at $88.10 (Aug 10 high).
- Gold is +0.1% at $1896.56, regaining some ground with a paring of earlier intraday USD strength and the push higher in Tsy yields. It briefly pushed to highs since Aug 16 but didn’t trouble resistance at $1918.3 (20-day EMA).
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.