Oil Ends A Week Of Heavy Declines Nudging Higher
Aug-05 2022 18:55By: Chris Harrison
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- Soft demand fears have dominated this week for crude oil with a strong payrolls report offering little support to a week of heavy declines. WTI is currently -9.8% having at one point been more than 10% for the worst weekly performance since early April and Brent even weaker at -13.8% with US grades outperforming as more exports flow to Europe to offset lower Russian imports.
- WTI is +0.5% on the day at $89.03 with vulnerability to current bearish conditions. Support is seen at $87.55 (Aug 4 low) having earlier in the week cleared a key support at $88.23 (Jul 14 low).
- Brent is +0.7% at $94.84 with bearish price activity, next eyeing support at $93.20 (Aug 4 low) with a bearish trigger of $91.22 (Jul 14 low) ultimately eyed.
- Gold meanwhile gives back more than half of yesterday’s jump higher, falling -0.9% to $1774.4 as Treasury yields and the dollar surge in response to a very strong payrolls report. It leaves a volatile week up just 0.5%, with resistance at $1795.0 (Aug 4 high) and support at $1754.4 (Aug 3 low).
- European gas firmed on the week, with TTF prices +2.8% and NBP +6.2% as tight Russia supply bites. US gas on the other hand sees the opposite, falling -2% as expanding domestic inventories eased winter-supply concerns.
