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Prices Higher But Technicals Bearish, July Could Find Some Support

OIL

Oil prices rose on Friday with WTI closing above $70 and Brent above $75. WTI has started APAC trading lower and is heading back towards $70. It is currently around $70.37/bbl. The lower USD index, down 0.4%, provided some support along with more positive risk appetite but the upside was limited by softer-than-expected US data.

  • WTI reached a high of $71.04 after a low of $69.53. It finished Friday up 0.8%. But WTI remains in bear mode and any gains are seen as corrective. Moving average studies are in bear mode position highlighting the downtrend. A clear break of support at $67.21 would open $64.41.
  • Brent hit a high of $75.84 after a low at $74.28. It ended up 0.8% at around $75.08.
  • Oil may receive some support this month with Saudi Arabia implementing its 1mbd output cut and data from the US showing the highest April demand for 16 years. The driving season is also increasing US demand with the 4-week average implied gasoline consumption at its highest since December 2021.

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