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Bearish Factors Dominate Thus Far

OIL

Crude oil remains under pressure, slipping to fresh session lows in recent trade. Earlier this morning our commodities team pointed to the following mix of bearish factors:

  • Continued focus on strong non-OPEC supply & estimates of slowing global demand growth this year.
  • A cut in Saudi Arabia OSPs to all regions over the weekend.
  • Broader risk aversion stemming from the HK/China equity space.
  • On the other side, supply risks surrounding the Middle East and Libya are providing little offset.
  • Initial technical support markers, at the Jan 3 lows in both WTI & Brent, remain some distance away.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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