Free Trial

Crude Slides On Demand Pessimism

COMMODITIES
  • Crude oil futures have slumped today as demand pessimism sweeps the market. The cut in Saudi’s OSPs, robust non-OPEC supplies, and a fall in fund net-long positions indicate bearish sentiment.
  • Saudi Arabia cut all official selling prices for all regions for February, with the price for Arab Light crude to Asia falling to the lowest level since November 2021, a price list showed.
  • Libya’s NOC announced a force majeure with immediate effect for its Sharara oilfield on Sunday due to recent ongoing protests that began hitting production last Wed.
  • Global crude floating storage held on tankers stationary for at least 7 days rose to 83.69mn bbls as of January 5 - up 2.1% from 81.94mn bbls a week prior according to Vortexa.
  • WTI is -4.0% at $70.88 but still doesn’t test support at $69.28 (Jan 3 low) after which lies the bear trigger at $67.98 (Dec 13 low).
  • Brent is -3.2% at $76.26, a sizeable step back closer to support at $74.79 (Jan 3 low) with still some way until the bear trigger at $71.21 (Jun 23 low).
  • Gold is -0.85% at $2028.1 having earlier dipped below $2020 before retracing, and still with some buffer above support at the 50-day EMA of $2011.3.

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.