Oil commentary [07/08/17]

News   •   Aug 07, 2017 10:34 +08

Oil continued to trade to the upper end of its weekly range in to the end of last week with both Brent and WTI rising about one percent on Friday. Slightly better than expected non-farm data no doubt buoyed sentiment, but both contracts appear to be in a holding pattern with the street unwilling to test the major resistance levels of last week.

Traders appear to be content to await the API and EIA Crude Inventory numbers, tomorrow and Wednesday evening Asia time, for a sense of direction in what is generally a very data light week for financial markets.

Brent spot is unchanged at 52.15 with its triple top at 52.70 unchallenged thus far and the must break level before we can talk about a new leg higher. Support continues to 50.45/65 zone which contains its 50% Fibonacci retracement and the 100-day moving average.

WTI spot is also unchanged at 49.40 with its double top resistance at 50.30 also unchallenged. Support continues to be at 48.20, last week’s low, and the 100-day moving average at 47.80.