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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.
COMMODITIES
- Oil prices are down sharply after Biden announced plans to release 1 million barrels of oil per day for up to 180 days from the SPR, widening the Brent-WTI spread in the process.
- Rystad notes that whilst the SPR has the technical capability to release 4mbpd, the maximum seen over the past twenty years has been about 900kbpd.
- OPEC+ ratified a 432kbpd increase scheduled for May, in line with expectations.
- European natural gas prices meanwhile increased 5%, with an intraday move closer to 10%, after Putin signed an order that if EU buyers don’t make gas payments in rubles, shipments will be stopped from tomorrow, April 1.
- WTI is -6.8% at $100.5, close to testing support at Tuesday’s low of $98.44 as it pulls back further from resistance at yesterday’s high of $108.75.
- Brent is -5.4% at $107.3, above initial support of $104.84 (Mar 28 low) whilst resistance remains $114.83 (Mar 29 high).
- Gold is +0.5% at $1942.44, moving closer to resistance of $1966.1 (Mar 24 high) whilst support remains at $1890.2 (Mar 29 low).
Oil and gold divergenceSource: Bloomberg
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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