- Crude oil prices has seen solid declines today as a bounce on stronger than expected US data proved short-lived, with some seeing continued concerns on weak China demand at the same time as there is ample supply despite OPEC+ cuts and additional voluntary Saudi cuts starting Jul 1.
- WTI is -2.5% at $67.61, moving closer to testing support at $66.96 (Jun 12 low), which if probed could open a key support at $64.41 (May 4 low).
- Bearish sentiment is evident in options space with the day’s most active strikes at $65/bbl puts for the CLQ3.
- Brent is -2.7% at $72.20, also moving closer to support at $71.50 (May 31 low) after which lies $71.20 (Jun 20 and May 4 lows).
- Gold is -0.5% at $1914.15, weighed by rising US yields after strength particularly in US consumer confidence and new home sales. Its earlier low of $1911.15 started to eye $1910.3 (Jun 23 low) at what was otherwise the lowest since mid-March. Failure for markets to provide support here would be resolutely bearish, although support is holding up for now.
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