Crude Remains Pressured On Demand Worries, Finds Round Number Support

Oil prices were lower again on Tuesday driven by the pullback in risk on general negative China sentiment despite the LPR cuts yesterday. In addition, China’s CNPC reduced its 2023 oil demand forecast. The USD index was flat.

• Brent fell 0.9% to $75.90 after reaching an intraday high of $77.15/bbl during London trading. It didn’t hold losses below $75 and $74.50 provided support with the intraday low briefly at $74.51. WTI hit a high of $72.38 but was 1.4% lower on the day at $70.90 and found support at $70 and reached a low of $69.76.
• WTI moving average studies are in bear mode but a break of $75.06 would signal a reversal. Currently any short-term gains are seen as corrective. Support is at $67.03, the May 31 low, and resistance at $75.06, the June 5 high.
• China’s CNPC revised down its oil demand expectations to 3.5% growth but crude imports would still rise to close to the 2020 record. CNPC is the largest oil & gas producer in China.