Free Trial

Supply Disruptions Head Crude Oil To Weekly Gains

COMMODITIES
  • Crude markets are headed for the US close with 1-2% gains on the day for mixed gains over the holiday-shortened week with WTI outperforming with help from SPR purchase plans.
  • Prices remain supported by escalations in the Middle East and supply disruptions from protests at Libya’s oil fields, where oil output has fallen to 981k b/d due to the outage at the Sharara oil field (Bloomberg citing Oil Minister Mohamed Oun).
  • US combined oil and gas rig count fell by one on the week to 621 rigs, according to Baker Hughes. This is the second successive on week fall.
  • WTI is +2.1% at $73.70 as it pushed closer to resistance at $74.98 (50-day EMA).
  • Brent is +1.4% at $78.66 but still a little off a key short-term resistance level at $81.45 (Dec 26 high).
  • Gold is +0.1% at $2045.1 after volatility tied to swings in the USD index after mixed data releases for US payrolls and ISM services, driving a daily range of $2024.58-2064.02. The low cleared support at $2040.2 (20-day EMA), with a more pronounced move lower potentially opening $1973.2 (Dec 13 low).
  • Weekly moves: WTI +2.7%, Brent +0.3%, Gold -0.9%, US nat gas +12.8%, EU TTF nat gas +4.4%.

To read the full story

Close

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.