WTI Crude Oil settled at $89.01, up 47 cents on the day.
It’s a win for the bulls, but certainly not the kind of rebound they were hoping for after yesterday’s dip below $90. It wasn’t all bad news, as crude showed some life after falling to $87.01.
On a fundamental level, the strong US jobs report undermines the idea that a recession will sap demand for oil. The United States added 528,000 jobs in July, more than double what economists expected.
Still, it was one of the worst weeks for oil this year. It has fallen $10 from last Friday’s close and is only up $10 on the year. Technically, the daily and weekly closes were below a series of March/April lows. The period of consolidation for most of the year has now resolved to the downside.
The open question in the coming week is what is happening with gasoline demand in the United States. I wrote about it here: The data driving the oil price rout is barely believable. This is something that oil bulls talk about all the time and has even made its way to ZeroHedge.