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Late Week Sell Off for Oil as Bearish Momentum Takes Hold

OIL

OIL MARKETS END OF DAY – Renewed Gaza ceasefire hopes, China weakness and a stronger dollar weighed on crude markets on Friday.

  • Brent SEP 24 down -2.7% at 82.8$/bbl
  • WTI AUG 24 down -3% at 80.36$/bbl
  • Oil has fallen back to mid-June levels breaking an earlier low on Tuesday in the later session sell off, creating more bearish momentum.
  • Markets remain higher on the year, supported by OPEC+ restraint, spearheaded by subdued Saudi flows.
  • WTI’s prompt spread remains in backwardation, indicating demand outweighs supply in the short term.
  • U.S. Secretary of State Antony Blinken said on Friday a long-sought ceasefire between Israel and the Palestinian militant group Hamas was within sight.
  • Oil markets have turned their sights to the outcome of what a Trump presidency would mean for energy markets as polling moved further in his favour this week and Biden’s future looks uncertain.
  • Canada wildfires continue as a potential supply side focus though most site evacuations remain non-essential staff only.

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