Free Trial
USDCAD TECHS

Northbound

US TSYS

FI Support Evaporates Amid Late Month End Selling

AUDUSD TECHS

Remains Vulnerable

CANADA

Late Risk Off Sees USDCAD Eye Cycle Highs

US TSY OPTIONS

BLOCK, Late Puts

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Off Best Levels In Asia; Demand Worry Remains In Focus

OIL

WTI is ~+$1.20 and Brent is ~+$1.40, with both benchmarks edging away from their respective session highs after a ~$1.50 surge earlier, with that move higher potentially being a delayed reaction to reports of a disruption to the Canada-U.S. Keystone pipeline.

  • To elaborate, BBG sources pointed to Keystone operator TC Energy reducing flows to the crude storage hub in Cushing (where WTI is delivered) by ~15% due to a “power supply glitch”, raising worry re: tightness in Cushing inventories.
  • WTI and Brent have however come nowhere near challenging their respective best levels on Thursday, with the well-documented rise in recession-related worry on Thursday (particularly in the U.S. and EU) exacerbating concern from some quarters re: reduced energy demand.
  • Elsewhere, Libyan crude output has risen above 700K bpd, short of the ~1.2mn bpd pre-crisis (keeping in mind the NOC had promised to restore production “within a week”, last Friday).
  • Brent’s prompt spread continues to point to rising worry re: near-term crude supply, with the measure hitting ~$4.69 at typing, compared to ~$4.00 at the start of the week.
  • Elsewhere, daily COVID case counts in China remain near two-month highs, with 880 reported for Thu vs. 826 for Wed. While the situation in major cities continues to stabilise, worry re: the country’s economic output remains elevated, with some participants likely eyeing industrial profit data next week, following warnings from the country’s steel industry earlier this week re: weak demand and other business challenges.
236 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

WTI is ~+$1.20 and Brent is ~+$1.40, with both benchmarks edging away from their respective session highs after a ~$1.50 surge earlier, with that move higher potentially being a delayed reaction to reports of a disruption to the Canada-U.S. Keystone pipeline.

  • To elaborate, BBG sources pointed to Keystone operator TC Energy reducing flows to the crude storage hub in Cushing (where WTI is delivered) by ~15% due to a “power supply glitch”, raising worry re: tightness in Cushing inventories.
  • WTI and Brent have however come nowhere near challenging their respective best levels on Thursday, with the well-documented rise in recession-related worry on Thursday (particularly in the U.S. and EU) exacerbating concern from some quarters re: reduced energy demand.
  • Elsewhere, Libyan crude output has risen above 700K bpd, short of the ~1.2mn bpd pre-crisis (keeping in mind the NOC had promised to restore production “within a week”, last Friday).
  • Brent’s prompt spread continues to point to rising worry re: near-term crude supply, with the measure hitting ~$4.69 at typing, compared to ~$4.00 at the start of the week.
  • Elsewhere, daily COVID case counts in China remain near two-month highs, with 880 reported for Thu vs. 826 for Wed. While the situation in major cities continues to stabilise, worry re: the country’s economic output remains elevated, with some participants likely eyeing industrial profit data next week, following warnings from the country’s steel industry earlier this week re: weak demand and other business challenges.