Crude Sinks As Developments Fuel Demand Fears

Oil prices sank driven by weaker risk appetite and disappointing US job opening data confirming the market’s demand fears. The upcoming Fed decision and this week’s bank rescue have also unsettled crude. WTI fell 5.5% to $71.62/bbl after an intraday high of $76.12 and close to the low of $71.43. Brent is down 5.1% to $75.32 following a high of $79.78 and also close to the low of $75.07. Crude is back to prices seen towards the end of March. The USD index fell 0.2%.

• WTI broke through April 28 and March 30 lows and is now under $71.76 which has opened up $70 as the next level to watch. $75 is the point to mind for Brent.
• Bloomberg is reporting that API announced that US crude inventories fell a further 3.94mn barrels last week after -6.08mn with gasoline posting a build of 400k and distillate a draw of 1mn, according to people familiar with the data.
• US March JOLTS job openings posted 9.59mn down from 9.974mn and less than expected.