Free Trial

Crude Pushing For Seventh Weekly Gain Whilst Gold Consolidates Painful Week

COMMODITIES
  • Crude oil has pushed back positive on the day as it nears a seventh week of gains. Latest gains were buoyed by IEA revising up its global oil demand forecast for this year to 102.2mbpd (albeit only from 102.1mbpd), on strong summer air travel, increased oil use in power generation and surging Chinese petrochemical activity.
  • It’s against a backdrop of OPEC on Thursday keeping its global oil demand forecast stable for this year at 102mbpd but showed a supply deficit of more than 2mbpd in Q3.
  • JPMorgan forecasts Brent crude prices to continue to rally to $90/bbl or above by September, while prices are expected to ease back in the fourth quarter of this year and 2024.
  • WTI is +1.0% at $83.68, not testing resistance at the round $85 after which lies $85.94 (Aug 23, 2022 high), nor support at $78.69 (Aug 3 low). Thursday’s $84.89 registered a fresh YTD high for the front contract.
  • Brent is +1.0% at $87.27, not testing resistance at $88.10 (Aug 10 high) nor support at $82.36 (Aug 3 low).
  • Gold is +0.04% at $1913.28, with earlier gains unwound on further USD strength with the latter’s resurgence acting as a significant headwind over the week. An overnight low of $1910.9 took another step closer to suppport at $1902.8 (Jul 6 low).
  • Natural gas again gets a special mention, with EU TTF front prices falling -4.7% today but still increasing strongly over the week on global LNG supply disruption, with ramifications for US natural gas prices.
  • Weekly moves: WTI +1.0%, Brent +1.2%, Gold -1.5%, US nat gas +7.6%, EU TTF nat gas +22%

To read the full story

Close

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.