Tracking Lower For the 2nd Straight Week

Brent crude is modestly higher in the first part of Friday trade. We were last near $83.65/bbl, down slightly from session highs ($83.78/bbl) and after opening at $83.26/bbl. This puts us +0.35% higher for the session to date, building on Thursday's modest 0.2% gain. WTI is near $79.35/bbl, following a similar trajectory to Brent. These trends are outperforming broader risk themes today, with the BBDXY up a further 0.20%, while regional equities are mostly in the red.

• Still, we are tracking lower for the second straight week, Brent off by 1.35% versus closing levels from the end of last week. WTI down 2.3% over the same period.
• Losses this week have been driven by a firmer USD/elevated yield backdrop ahead of the Jackson Hole symposium. Demand concerns out of China haven't helped, while there have also been some signs of greater oil supply from some OPEC members (albeit not core members).
• For Brent, support has been evident in recent sessions around $82/bbl level, which also coincides with the 50-day EMA. The 100-day EMA sits further south near $81/bbl. On the topside the 20-day EMA is around $84/bbl, while the 21 August high sits around $85.85/bbl.
• Outside of the upcoming Jackson Hole symposium (Fri-Sat), next week doesn't deliver many fresh oil specific risk events. Note we get US Q2 GDP on Wednesday and official PMIs from China on Thursday.