The oil market has been in a tough spot.
The macro is deteriorating and hopes for Chinese stimulus are fading. At the same time, all the data out of Russian and OPEC show a surprising drop in exports.
That’s led to a real push-and-pull in the market including a big jump on Wednesday and a bigger slump today. WTI crude oil settled Friday down $2.48 to $80.34, which is the lowest settlement since June 17.
On an intraday basis, crude is still within the recent range but just barely. Next week eyes will be on China for some post-plenum stimulus plans but I wouldn’t count on it. Otherwise, we will look to US GDP data and the regular inventory numbers, which ahve been supportive so far.
Out in the Atlantic, there are currently no disturbances that could turn into hurricanes.
This article was written by Adam Button at www.forexlive.com.
