Oil Sees Solid Weekly Gains Whilst Gas Soars
Aug-26 19:12By: Chris Harrison
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- Crude oil is ending a week of solid gains by continuing to increase, but with gains heavily front-dated on the day and with declines in WTI for Jan’23 contracts and beyond as Powell talks of maintaining a restrictive policy for some time with strong caution historically against prematurely loosening policy.
- Gains for the week are helped by solid US inventory draw plus prospects of OPEC production cuts.
- WTI is +0.7% at $93.13, moving closer to resistance at $96.68 (Aug 1 high) as it follows through on a short-term trend needle that had been pointing north.
- Brent is +1.7% at $101.02, also moving closer to resistance at $102.47 (Aug 25 high) and trading above the 50-day EMA.
- Gold is -1.2% at $1737.47, sliding with a return of dollar strength and reversing what had been seen as a corrective bounce. Initial support is eyed at $1727.8 (Aug 22 low) but with sights on $1711.7 (Jul 27 low).
- European gas meanwhile has surged again, with TTF prices +5.5% on the day for 39% on the week and settling at a fresh record high as a squeeze on gas flows continues, further hindered by the delayed re-opening of the Freeport terminal in the US and maintenance at gas facilities in Norway.
- Weekly moves: WTI +2.5%, Brent +4.4%, Gold -0.55%, TTF Nat Gas 38.7% and HH Nat Gas -0.55%
