Free Trial

Oil Slide Hits Double Digits On The Week As Supply Concerns Pushed To The Background

  • Crude oil is on track to end every day lower this week for a 12% decline on the week and at new year to date lows.
  • News from the session has included Xi saying China is willing to boost oil & gas imports from GCC countries whilst TC Energy is planning to restart one leg of the shuttered Keystone oil pipeline Dec 10 with the leg that extends to the Cushing, Okla, storage hub expected to restart Dec 20.
  • Most recently, the US rig count falling by 4 during the week in a potential sign that shale drilling may be slowing has done little to change prices.
  • WTI is -1.4% at $70.46, clearing support at $71.12 (yesterday’s low) and coming close to testing the psychological $70. Highlighting the continued downward trend, most active strikes in the CLF3 have been $65/bbl puts today.
  • Brent is -1.0% at $75.42, through yesterday’s low of $75.74 to next open $72.33 (1.00 proj of the Nov 7 – 28 – Dec 1 price swing).
  • Gold is +0.45% at $1797.19, moving closer to key resistance at $1807.9 (Aug 10 high).
  • Weekly moves: WTI -12%, Brent -12%, Gold 0.0%, US Nat Gas -2%, EU TTF Nat Gas +2.5%

To read the full story



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.