Free Trial

Crude Ultimately Weighed Marginally By US Stocks Build, Gold Under Further Pressure

COMMODITIES
  • Crude futures have reversed earlier gains after some mixed trading, ultimately weighed by a build in US crude stocks, with weekly EIA data showing +3,955 build vs expectations of +1,993. The elevated level of oil is still supported though by tight supplies and the drawdown in global inventories with support from demand optimism from US and strong China crude imports.
  • Global oil demand will outpace supply by 1.24mbpd in the second half of this year, given strong demand from China according to the IEA Monthly Oil Market Report.
  • Brent prices could exceed $100/b before 2024, driven by OPEC+ supply cuts and a more positive demand backdrop in Asia, Bank of America said in a note Sep. 12.
  • WTI is -0.3% at $88.57, but remains far above support at $83.91 (20-day EMA) after its recent strong run.
  • Brent is -0.15% at $91.91 but also remains far above support at $87.59 (20-day EMA).
  • Gold meanwhile sees further weakness, down -0.24% at $1909.06 off a low of $1905.69 that took another step closer to support at $1903.9 (Aug 25 low). It’s an outsized loss considering Treasury yield pushing lower after US CPI and only minimal USD strength on balance.

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.