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Crude Oil Off ~2.5% As Risk Rally Fades

COMMODITIES

Both WTI and Brent crude futures trade lower by around 2.5% apiece early Friday, with the recent risk rally fading a little further. Fundamental newsflow behind the move is thin on the ground, but a firming USD and lower equity markets are weighing on commodities more broadly.

Monday's MLK public holiday delayed the release of DoE inventories and the EIA NatGas storage change figures to today. Markets expect a draw of near 2mln barrels for headline crude inventories, and a draw of 175 BCF for Nat Gas.

Despite softer risk sentiment this morning, precious metals are failing to garner any support, with gold and silver slipping alongside stocks. Wednesday's lows in silver undercut at 25.04, with the 50- and 100-dmas also providing some support at 25.02 and 24.89 respectively.

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