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Oil Shies From New COVID Variant, Taking Out Key Support

COMMODITIES
  • WTI and Brent crude futures trade sharply lower, with concerns for a fresh wave of lockdowns sweeping across Europe weighing on commodities globally. WTI has slipped to levels not seen since September, with key support at the 100-dma giving way at $74.43/bbl.
  • Gold and silver are benefiting from the risk-off move, with spot gold back above the $1,800/oz and narrowing the gap with the Monday high at $1,84914/oz.
  • With the downside in the front-end of the futures curve, volumes around $70/bbl, $71/bbl WTI put strikes have surged, underpinning the risk-off moves and strengthening downside ahead of the NY crossover.

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