Crude Starts Session Lower, Key China Data Coming Up

Oil prices have started the week lower after falling sharply on Friday on the back of firmer Michigan consumer data. WTI fell 2.1% to $75.27/bbl and is down 0.7% so far during the APAC session to $74.88, breaking round number support at $75. It was up 1.9% over last week though on signs that the market is tightening. Brent fell under $80 to $79.70 but was still up 1.5% on the week.

• WTI reached a high on Thursday of $77.33 and Brent $81.75, the highest since April 24. WTI resistance is at $78.03 with support $72.31, and Brent at $82.06 and $76.98 respectively.
• Prices last week had been supported by an output disruption at a Libyan oil field which produces 250-260kbd. Production has now resumed putting downward pressure on crude at the start of today’s trading. Outages in Nigeria continue though.
• Later there is a swathe of data from China including Q2 GDP, June IP and retail sales. China is the largest crude importer in the world and the disappointing recovery has weighed on oil prices.