Prices Trending Down But Today Found Support From China Reopening

MNI (Australia) - Oil prices are trading in a narrow range again today of less than a dollar. December has seen range trading at continually lower levels driven by recession fears. WTI and Brent are up around 1% on their NY close at around $72.75/bbl and $77.85 respectively, but remain close to January’s levels.

• WTI reached a high of $72.85 today and a low of $72.27. While Brent’s high was $77.99 and low $77.34. Crude’s move lower over the last few days now opens up $70 as a key support level for WTI and $77.04 for Brent.
• Oil during today’s session found some support from the improved demand outlook from China, the world’s largest oil importer, as it gradually reopens.
• While the EIA US inventory data overnight showed another crude drawdown it reported an increase in distillate and gasoline suggesting weaker demand in the US. The government is monitoring demand and supply factors before deciding whether to increase the strategic reserves.
• Currently, the cap on Russian seaborne oil that began at the start of the week doesn’t seem to have had a significant impact but there is a growing hold up of tankers around Turkey (bbg).
• There is little of note overnight with the Fed in blackout ahead of its December 14 meeting. The US jobless claims data are the only major release before the PPI and Michigan consumer sentiment on Friday.