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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
Oil prices rose moderately on Wednesday after selling off the previous four days. The fourth consecutive weekly US inventory drawdown provided crude with some support in a deteriorating risk environment. The USD index closed little changed but had been weaker earlier in the session providing some support.
- WTI is up 0.7% to $77.50/bbl and has started today slightly higher at $77.53. It fell to a low of $76.98 before rebounding to $78.19. The benchmark is now down 3.9% in July. Initial support is at $76.52 and resistance at $83.58.
- Brent rose 0.6% to $81.50/bbl off the intraday high of $82.23 but is still down 4.1% this month. The trend condition remains bullish but the cycle is currently corrective. Initial support is at $80.51 with resistance at $87.95.
- The EIA reported a 3.74mn barrel US inventory drawdown for last week, the fourth consecutive decline amounting to a total of 24.21mn barrels. The level is now its lowest since the start of February. Refining utilisation fell 2.1pp to 91.6% while gasoline stocks fell 5.57mn and distillate 2.75mn.
- Russia has been overproducing and has said that it will reduce output in October and November and then again from March to September next year. OPEC+ compliance with revised quotas has been inconsistent.
US EIA crude stocks ex SPR
Source: MNI - Market News/Refinitiv
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.
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