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Bears Probing Yesterday's Lows

OIL

Crude futures and time spreads remain under pressure, with the USD rally extending.

  • Yesterday’s oil weakness came alongside a USD rally after the firmer-than-expected Q1 employment cost data provided the latest ‘hawkish’ U.S. data input.
  • Reports pointing to a build in the headline API crude inventory metric and distillate stocks late yesterday also help keep the pressure on, especially with the BBG survey median looking for a drawdown in the headline DoE crude inventory equivalent.
  • Note that bears haven’t yet been able to force a move below yesterday’s base in WTI futures ($80.95). A breach there would expose the nearby Apr 22 low ($80.70).
  • Brent futures had an incremental look through yesterday’s low, before ticking away from worst levels of the day. Next support lies at the 50-day EMA ($85.32).
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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