MNI China Daily Summary: Wednesday, January 8

MNI: GERMANY NOV RETAIL SALES -0.6% M/M (FCST: 0.5%)

MNI BRIEF: Q3 Output Gap Hits 18th Negative Result - BOJ

MNI: PBOC Net Injects CNY1.1 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1887 Weds; -2.33% Y/Y

MNI BRIEF: Fed's Bostic Says Bumpy Inflation Calls For Caution

MNI: US MBA: MARKET COMPOSITE -3.7% SA THRU JAN 03 WK

EZ/UK T-Bill Calendar: Italy, UK Auction on Friday

MNI: EUROZONE NOV PPI +1.6% M/M, -1.2% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: Crude Down Sharply As Israel/Hezbollah Truce Deal Closer

OIL
EM BulletCommoditiesEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Oil prices fell sharply on Monday as it appears that Israel and Hezbollah are close to a ceasefire. It will be discussed by Israel’s cabinet today. The weaker US dollar couldn’t soften this move (USD index -0.5%). 

  • WTI fell below $70 to be down 3.0% at $69.08/bbl. It broke below $69 too to make a low of $68.74. The benchmark is now only up 0.4% in November. The bearish theme remains intact with support at $66.32 and the bear trigger at $63.90.
  • Brent is down 2.7% to $73.18/bbl after falling below $73 to a low of $72.84, still above support at $70.28, October 29 low. It is now only 0.5% higher this month. Initial resistance is at $76.24.
  • The ceasefire deal includes a 60-day truce between Israel and Iran-supported Hezbollah. During this time Israel will leave southern Lebanon and Hezbollah will no longer have a presence in the area with the Lebanese army replacing it.
  • OPEC+ meets this weekend and the outcome will be watched closely. It has already delayed the planned reduction in output cuts twice. They are now scheduled to begin at the start of January but with supply looking robust in 2025, expectations of a further delay are growing.
  • The UK increased sanctions on Russian energy and the EU is looking to introduce further sanctions on Russian oil tankers but will need the support of the entire bloc. 
227 words

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.

Oil prices fell sharply on Monday as it appears that Israel and Hezbollah are close to a ceasefire. It will be discussed by Israel’s cabinet today. The weaker US dollar couldn’t soften this move (USD index -0.5%). 

  • WTI fell below $70 to be down 3.0% at $69.08/bbl. It broke below $69 too to make a low of $68.74. The benchmark is now only up 0.4% in November. The bearish theme remains intact with support at $66.32 and the bear trigger at $63.90.
  • Brent is down 2.7% to $73.18/bbl after falling below $73 to a low of $72.84, still above support at $70.28, October 29 low. It is now only 0.5% higher this month. Initial resistance is at $76.24.
  • The ceasefire deal includes a 60-day truce between Israel and Iran-supported Hezbollah. During this time Israel will leave southern Lebanon and Hezbollah will no longer have a presence in the area with the Lebanese army replacing it.
  • OPEC+ meets this weekend and the outcome will be watched closely. It has already delayed the planned reduction in output cuts twice. They are now scheduled to begin at the start of January but with supply looking robust in 2025, expectations of a further delay are growing.
  • The UK increased sanctions on Russian energy and the EU is looking to introduce further sanctions on Russian oil tankers but will need the support of the entire bloc.