OIL: Crude Resumes Decline with Demand in Focus

Crude future and spreads resume the bearish trend pulling back towards the lows from yesterday with demand still in focus ahead of industry report this week and US CPI data tomorrow. 

• Oil markets remain concerned about the strength of China’s economy with August crude import volumes down 7% y/y although had increased 16% on the month.
• The weaker than expected US jobs report on Friday raised demand concerns for the US and points towards a 25bp Fed rate cut this month.
• The market also watches for the impact of a storm in the US Gulf with 9 major oil platforms and 12 Gulf coast refineries in its path. Chevron, Exxon and Shell have evacuated some staff and closed some facilities.
• Technical analysis shows first Brent Nov24 contract support at the Sept 5 low of $70.61/bbl and WTI Oct24 contract support at $67.17/bbl.
  • Brent NOV 24 down 1.3% at 70.94$/bbl
  • WTI OCT 24 down 1.4% at 67.76$/bbl
  • Brent NOV 24-DEC 24 down 0.05$/bbl at 0.43$/bbl
  • Brent DEC 24-DEC 25 down 0.28$/bbl at 1.06$/bbl
  • WTI OCT 24-NOV 24 down 0.04$/bbl at 0.76$/bbl
  • WTI DEC 24-DEC 25 down 0.23$/bbl at 1.56$/bbl