Crude Trading Sideways Ahead Of Key US Jobs Data

Oil prices fell around a percent on Wednesday as Fed Chairman Powell’s hawkish comments continued to impact the market. During APAC trading they are in a very narrow range and maintaining yesterday’s losses. WTI is around $76.65/bbl between the intraday high of $76.75 and the low of $76.41. Brent is about $82.68. The USD index is also flat during the APAC session.

• Both Brent and WTI broke through their 50- and 100-day simple moving averages during Wednesday’s sell off. Both are back above their Mar 3 lows but the break lower opened up key short-term support of $80.25 and $73.80 respectively.
• The decline in EIA inventories in the latest week hasn’t provided any support to crude. The market continues to juggle optimism regarding greater demand, especially from China, and increased concerns of a US recession with Russian supply an uncertain variable.
• Powell mentioned during his comments to the House that China’s reopening could increase commodity prices such as oil, but wouldn’t be material for US inflation.
• Later today the Fed’s Barr speaks on crypto. The data calendar is light with US jobless claims and February Challenger job cuts. The main focus over is February US payrolls on Friday, which are expected to rise a solid 225k with the unemployment rate steady at 3.4%.