OIL FUTURES: Crude rises on firm technical support

Crude oil futures were higher in mid-afternoon Asian trade Sept. 9 as prices rebounded off firm technical support levels even as weaker-than-expected inflation data from China capped gains.

At 2:47 pm Singapore time (0647 GMT), the ICE November Brent futures contract was up 64 cents/b (0.90%) from the previous close at $71.70/b, while the NYMEX October light sweet crude contract rose 66 cents/b (0.98%) to $68.33/b.

Crude prices are still trading above key support levels following a selloff that sent oil futures to multi-year lows.

Brent prices are struggling to hold above their 2023 lows at the mid-$71s/b, IG's Market Strategist Yeap Jun Rong said Sept. 9.

"While buyers may attempt to defend the crucial support for now, it is too early to call for a broader reversal," he said, adding the daily relative strength index still reflected a bearish tilt.

Meanwhile, US crude prices have rebounded off their mid-2023 lows though the bounce appeared to lack momentum, IG's Chief Market Analyst Chris Beauchamp said.

"$67.30/b provided support during the middle of 2023, so this will be a key area to monitor. There seems to be little sign of any bullish momentum, though a close back above $70/b might suggest that a low has formed," Beauchamp said.

Crude oil prices remained under pressure through the Asian session after a softer-than-anticipated inflation print from China raised fresh concerns over the state of the country's economic rebound, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

China's consumer price index rose 0.6% on the year in August, missing estimates of 0.7% growth.

"Inflation in China came in below estimates, not helping to relieve the growing tensions about China and its sputtering economy," Ozkardeskaya said.

Weakness in China's inflation data has reflected the concerning state of consumption in Asia's largest economy, analysts noted.

Investors are now looking ahead to monthly market reports by OPEC and other energy agencies and their latest forecasts for demand.

OPEC's Monthly Oil Market Report, due Sept. 10, will be of particular interest given the bloc's recent delay in its planned rollback of voluntary production cuts.

Dubai crude

Dubai crude swaps and intermonth spreads were lower from the previous close in mid-afternoon Asian trade Sept. 9.

The November Dubai swap was pegged at $70.02/b at 2:00 pm Singapore time (0600 GMT), down $1.43/b (2.00%) from the previous Asian close.

The October-November Dubai swap intermonth spread was pegged at 57 cents/b, narrower by 4 cents/b over the same period, and the November-December intermonth spread was pegged at 30 cents/b, narrower by 6 cents/b.

The November Brent-Dubai exchange of futures for swaps was pegged at $1.59/b, down 7 cents/b.