Weaker, But Brent Avoids Fresh Test Of $72/bbl For Now

Brent crude got close to $73.75/bbl in early dealings but is now back to $72.40/bbl, which is below closing levels from the end of last week. We are off a further 0.8% so far today, after losing 11.85% last week. We are yet to test sub $72/bbl yet, with support around this region tested on 3 occasions through the tail end of last week. WTI is off by a similar amount so far today and currently sits around the $66.20/bbl level.

• Oil has followed broader risk appetite today, with limited positive follow through to the announcement that UBS will take over Credit Suisse. Regional equities are mostly weaker and EU futures are back int he red (after being as high as +1.4% earlier).
• The demand outlook amid turmoil in the global banking sector remains a focus point.
• Goldman Sachs analysts no longer see Brent reaching $100/bbl this year (with a revised $94/bbl forecast for the 12 months ahead).
• Brent prompt spreads remain weak, while the closure of a France refinery over the weekend (due to protests) also expected to weigh on near term demand.