Crude Stays Strong As Outlook Supportive

Oil prices finished the week little changed after rising slightly on Friday. WTI has started the week down marginally at $82.75/bbl after closing just above $83. Brent finished at $86.59. The greenback strengthened after a slightly higher US PPI read and the USD index finished 0.3% higher.

• Oil prices were supported by the IEA revising up its crude demand forecasts slightly due to higher summer air travel, increased use for power and rising petrochemical output in China. In its monthly report, OPEC projected stable demand but a Q3 supply deficit of over 2mbd. JP Morgan is expecting Brent to rise to at least $90/bbl by September and then moderate through Q4.
• WTI rose 0.3% on Friday to end the week up 0.3%. It reached an intraday high of $83.81. Resistance is at $85 followed by $85.94, 23 August 2022 high. Brent rose 0.2% to be up 0.4% on the week. It made a high of $87.35 with resistance at $88.10.
• CFTC net oil positions rose last week to 255.9k from 241.9k.
• European natural gas prices fell 3.1% to EUR35.90/mwh on Friday but finished the week up 17.8%. They reached a high of EUR43.55 last week following news of possible Australian strike action, but it was still well below the June 15 peak of EUR51.65.