Underperforming Other Risk Assets

Brent crude is marginally firmer, +0.20% for the Monday session so far. This is underperforming broader risk appetite trends, where the USD is off by ~0.80%, while US equity futures are close to session highs. For Brent, we haven't been able to make much headway above the $83/bbl level, which is where we currently track. For WTI, we are just shy of the $77/bbl level.

• Brent is sub all the key EMA levels, with the 20-day, around $83.65/bbl, not too far away on the topside.
• China comments from new Premier Li Qiang that hitting the 5% growth target won't be easy may have weighed on oil sentiment at the margins. Still, other comments were encouraging from the perspective of opening up the China economy and support of the private sector.
• The skew of market positioning still remains placed for higher oil prices. ICE Brent futures data remain heavily skewed towards longs, as of Tuesday last week.
• Looking ahead, on Tuesday we get the OPEC monthly oil report, along with US CPI. While on Wednesday the IEA monthly report is out, as well as China monthly activity figures.