US crude futures settle at $77.17. That’s up $1.43 or 1.89% on the day.
For the trading week, oil prices are trading up around 2.07%
The high for the day reached $77.69. The low price reached $75.36. Catalysts include:
- Concerns over global growth took precedence in the market, overshadowing geopolitical risks in the Middle East.
- Iraq’s oil minister reiterated the country’s commitment to the OPEC+ agreement on production levels but noted that increased oil exports by some OPEC members are considered “natural.”
- Brazil’s rising oil production, with Petrobras announcing a new USD 100 billion capex 5-year plan, remained a focal point.
- Ukraine’s Energy Minister suggested potential retaliatory attacks on Russian energy infrastructure if Russia intensifies targeting Ukraine’s electric system during the winter.
Production in the US remains near all-time highs which is helping to increase supply. Slower growth in China is a negative for demand.
A positive would be the US does need to increase its strategic petroleum reserves at some point. That may help to put a floor on the price of oil. Recall that in May, the price reached levels near $64, but little was added to the reserves. Increased growth from China would also give the price a boost.
Technically the prices closed the week below its 200-day moving average at $78.11 (see green line in the chart below). The price also moved away from its higher 100-day moving average (blue line in the chart below) currently comes in at $81.94. It would take a move above each to increase the bullish bias from a technical perspective.
Crude oil is trading below its 200 day moving average