Free Trial
JGB TECHS

(U2) Solid Bounce Into the Close

USDCAD TECHS

Bullish Price Structure

AUDUSD TECHS

Clears Key Support

EURJPY TECHS

Retracement Mode

COMMODITIES

Oil Supply Constraints Trump Lower Demand

USDJPY TECHS

Pullback Considered Corrective

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

WTI Revisits $100 As Dollar Rallies; Shanghai Cases Ease But Outbreak Expands Nationwide

OIL

WTI and Brent are ~$1.60 weaker at typing, operating a touch above Wednesday’s trough at typing. Both benchmarks have come under pressure as the USD (DXY) continues to trade a little below 5-year highs made on Wednesday in the NY session, while debate re: the trajectory of China’s current COVID outbreak has done the rounds in Asia.

  • To elaborate, fresh reported COVID cases in Shanghai have declined for a fifth day to ~10.7K, the lowest in over three weeks. The outbreak however continues to spread to other key population hubs, with the city of Hangzhou (home to several Chinese large-caps) implementing a mass testing regime and Beijing reporting the limited suspension of in-person classes. A note that this comes as other areas such as the port cities of Qingdao and Qinhuangdao have been reportedly placed under full/partial lockdown.
  • Keeping within the region, Sinopec has issued a forecast that crude demand in China would recover by end-Q2 in ‘22, led by predictions of “pent-up demand” once COVID case numbers recede.
  • Looking to the U.S., EIA inventory data on Wednesday offered a relatively mixed picture, with figures pointing to a build in crude and Cushing hub inventories, with a surprise drawdown in gasoline stocks and a decline in distillate stockpiles observed as well.
  • WTI and Brent futures largely rose off their session lows after the EIA data release, with events in China (re: demand destruction worry) Europe (re: possible sanctions on Russian crude and the cutting of Russian gas supplies to Europe) returning into focus.
250 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

WTI and Brent are ~$1.60 weaker at typing, operating a touch above Wednesday’s trough at typing. Both benchmarks have come under pressure as the USD (DXY) continues to trade a little below 5-year highs made on Wednesday in the NY session, while debate re: the trajectory of China’s current COVID outbreak has done the rounds in Asia.

  • To elaborate, fresh reported COVID cases in Shanghai have declined for a fifth day to ~10.7K, the lowest in over three weeks. The outbreak however continues to spread to other key population hubs, with the city of Hangzhou (home to several Chinese large-caps) implementing a mass testing regime and Beijing reporting the limited suspension of in-person classes. A note that this comes as other areas such as the port cities of Qingdao and Qinhuangdao have been reportedly placed under full/partial lockdown.
  • Keeping within the region, Sinopec has issued a forecast that crude demand in China would recover by end-Q2 in ‘22, led by predictions of “pent-up demand” once COVID case numbers recede.
  • Looking to the U.S., EIA inventory data on Wednesday offered a relatively mixed picture, with figures pointing to a build in crude and Cushing hub inventories, with a surprise drawdown in gasoline stocks and a decline in distillate stockpiles observed as well.
  • WTI and Brent futures largely rose off their session lows after the EIA data release, with events in China (re: demand destruction worry) Europe (re: possible sanctions on Russian crude and the cutting of Russian gas supplies to Europe) returning into focus.