Oil's pullback yesterday saw new lows hit in....>

OIL: Oil's pullback yesterday saw new lows hit in the overnight session with

Brent touching its lowest levels of the month and WTI also approaching this

level. We have since moved around $1 off the lows for WTI and $0.80 for Brent.

This represents around half of the move lower since yesterday's close.

- Concerns around a resurgence of Covid-19 cases in several US states kept risk

appetite on the backfoot yesterday and concerns over a second peak kept oil

under pressure through the session.

- Both WTI and Brent are currently on course for their first weekly falls since

April after six consecutive weekly increases.

- In terms of technicals, yesterday we cleared trendline support in both WTI and

Brent, signalling a potential short-term reversal. For WTI, deeper losses would

expose $33.00, the 50-day EMA and $30.72, May 22 low and a key support. For

Brent support is at $34.35, and $33.94, May 28 and 22 lows respectively.