July 21, 2022 19:01 GMT
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- Improved risk sentiment through the day has seen crude oil prices only partially recovered from sliding through the European session on a combination of Libyan production ramping up again quite substantially, the Russian gas situation easing as Nord Stream 1 flows reached 40% of capacity and continued spillover from implied weak US gasoline demand.
- More recently Putin and Saudi Crown Price bin Salman will continue oil cooperation, whilst there has also been a curveball thrown up by Reuters sources reporting the Nord Stream turbine returning from Canada has been stuck in transit in Germany because Russia has so far not given the go-ahead to transport it back.
- WTI is -3.65% at $96.19, stepping back from resistance eyed at the 50-day EMA of $102.29 but still easily above support at $91.64 (Jul 15 low).
- Brent is -3.7% at $103.76, also away from the 50-day EMA of $107.46 having tested it yesterday.
- Gold on the other hand has jumped +1.1% to $1715.01 (with an intraday swing of 2%) after sustained downward pressure in recent weeks, helped by Tsy yields sliding through the session after the ECB’s front-loaded 50bp hike.
- Coming before news of Russia’s blocking of the turbine transport, TTF natural gas prices had edged up just +0.4% higher.
Mixed fortunes for oil (WTI, white) and gold (spot, yellow)Source: Bloomberg