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Commoditiy | Price | Weekly Change | 50day-Ave | 100day-Ave | 200day-Ave |
---|---|---|---|---|---|
Brent ($/b) | 82.66 | -2.19 | 83.66 | 85.01 | 83.23 |
US WTI ($/b) | 80.12 | -1.79 | 79.71 | 80.79 | 78.88 |
ICE Gasoil ($/MT) | 745.00 | -28.75 | 762.16 | 785.56 | 806.45 |
Jet CIF NWE ($/MT) | 796.86 | -28.06 | 819.59 | 835.51 | 855.64 |
Brent closed the week lower and below 83 \$/b, breaking through the 100 and 200-day moving averages. Crude fell sharply on Friday with the global cyber outage affecting a wide range of companies, notably airlines. Wednesday was the only day where Brent closed higher following the surprise bullish US oil inventory data with a consecutive week of crude draws. Inventory draws have been seen globally not only in the US, but the question is also if these can be sustained throughout Q3 and the higher demand period to prepare for OPEC+’s plan to reintroduce the additional voluntary cuts later in the year.
China’s Third Plenum concluded last week with no signs of any significant economic support measures, instead suggesting that the focus will be to shift support from sectors such as property which has historically driven growth. Quarterly growth figures published early last week also disappointed coming in at 4.7%. However, this morning China announced surprise interest rate cuts in an attempt to support growth. The cut is modest and although a move in the right direction to support the economy, perhaps not enough to make a fundamental impact.
Brent is trading around 82.80 \$/b this morning and not far off Friday’s low of 82.58 \$/b. The next level to look out for is the psychological level of 80 \$/b and following that the June low of 77 \$/b. On the upside 86 \$/b is the top of the recent range and above that the recent high of 87.84 \$/b.
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