May 13, 2022 18:36 GMT
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- Crude oil is finishing the week on a strong note, up almost 4% but it’s only enough to leave WTI up 0.5% on the week and Brent down -1%.
- The largely V-shaped move through the week started with China lockdown-related demand fears before recovering on oil-specific factors such as the EU edging closer to a ban on Russian oil amidst Hungary stalling proceedings before a broader bounce in risk sentiment and increasing tightness in refined product markets ahead of the US driving season.
- WTI is +3.9% at $110.35 having moved nearer to resistance at $111.37 next (May 5 high). Robust increases in the rig count helped briefly pause the rally.
- Brent is +3.6% at $111.33 nearing $114.00 (May 5 high) after which it would open the bull trigger of $115.76.
- Gold finishes a tough week heading another -0.6% on the day for -3.9%, the worst since June, on surging dollar strength. At $1810.5 and briefly dipping under $1800, it moves nearer to the key support of $1780.4 (Jan 28 low).
Mixed fortunes for oil (WTI 1st) and goldSource: Bloomberg