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Crude Oil Nudges Lower With China Demand

COMMODITIES
  • 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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