The bearish mood descending on markets and the prospects for an Iran nuclear deal have hit the oil market hard in the past three trading days.
WTI crude is at the lows of the day at $86.93. The low August 16 was $85.87. There’s some support down the the October 2021 highs but below that it could get ugly in a hurry.
The demand destruction narrative is on a weak footing. That was everywhere a month ago but the June US official data was released yesterday and it showed June 2022 was above June 2019 and the highest for June since 2006.
Saudi Arabia has lamented the differences in the cash and paper markets for oil. That’s something you always seen in commodities so I tend to dismiss it but here’s a legendary oil trader who also isn’t buying it.
For the moment, CAD is also holding up ok. USD/CAD broke 1.3200 earlier but has fallen back to 1.3167.