High rates rear its ugly head in the oil market
2024-02-26
Summary:
Asian oil prices dropped Monday, continuing losses from the prior session, with a weekly decline of 2-3% due to fading rate cuts.
Oil prices fell in early Asian trading on Monday, extending losses from the previous session after oil ended the week 2-3% lower amid ebbing rate cut expectations.
White House national security adviser Jake Sullivan told CNN on Sunday that negotiators for the US, Egypt, Qatar and Israel had agreed on the basic contours of a hostage deal during talks in Paris.
However Israeli PM Netanyahu said it was not clear yet whether a deal would materialise. The Iran-aligned Houthis is continuing their attacks on shipping in the Red Sea.
The EIA said last week that crude inventories had risen by 3.5 million barrels in the week ending 16 Feb. That compared with analysts' expectations in a Reuters poll for a gain of 3.9 million barrels.
Oil has been caught between the bullish tailwinds of lower OPEC output and rising Middle East tensions, and bearish concerns about flagging consumption in top importer China this year.
China saw arrivals at 11.31 million bpd in January, just below the 11.48 million bpd imports in December, according to LSEG data. Russia kept its top spot as the country’s largest crude supplier.
WTI crude dipped below its 200 SMA and its lowest since 8 Feb on Friday. The immediate support is located around $75.5, below which the significant downside potential will be unlocked.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
NFP - AugRisk assets fall sharply
US job growth in July slowed more than expected, raising fears of a broader economic slowdown and causing risky assets to tumble throughout the month.
2024-09-06
OPEC+ helps oil prices steady at 14-month low
Oil prices rose slightly on Friday, as investors balanced a large US crude inventory draw and OPEC+ production delays with mixed US employment data.
2024-09-06
Wall St recommend long gold unanimously
Bullion steadied Thursday below $2500 after a market sell-off. It is expected to remain near this level until the NFP report is released.
2024-09-05
