Free Trial

Crude Starts To Near Resistance As Tight Supply Wins Out

  • Crude oil has seen further solid increases today as a tighter supply outlook wins out over softer demand concerns, with solid USD strength and rising Treasury yields doing little to dent latest increases.
  • Earlier, Kuwait rowed back comments in Al Arabiya that it was requesting an OPEC+ quota increase whilst BofA retained its average 2023 price forecasts with Brent at $80/bbl and WTI at $70/bbl as the global oil supply balance should remain tight. It is seen supported by additional OPEC+ cuts, slower non-OPEC growth and rebounding demand from Asia.
  • WTI sits in the order of +1.3% from late yesterday levels but with no formal close from Independence Day at $71.95 (+3.1% from Monday’s close). It moves closer to resistance at $72.72 (Jun 21 high) after which lies key resistance at $75.70 (Jun 5 high).
  • Brent is +0.6% at $76.72 as it nears resistance at $77.25 (Jun 21 high) after which sits a bull trigger at $78.47 (Jun 5 high).
  • Gold is -0.5% at $1916.25 as it comes under renewed pressure late on with the FOMC minutes failing to provide a dovish angle with a continued bid for the USD. It remains above support at $1893.1 (Jun 29 low).

To read the full story



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.