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COMMODITIES: Crude Futures Extend Losses Amid Unexpected Inventory Build

COMMODITIES
  • Crude markets are headed for another losing session as we approach the US close with additional pressure emanating from an unexpected build in US crude inventories according to the EIA weekly data.
  • Front-month WTI is down 1.6% at 77.12$/bbl and the contract has erased the entirety of the initial advance this week. On the downside, support doesn’t come in until $74.60, the Aug 8 low and key support at $71.67, the Aug 5 low. 
  • For Natural Gas, Henry Hub is ending the day trading higher, although has moderated its gains and reverted to the previous three-day range. Slightly lower production levels, strong export flows to Mexico, and warmer weather have all been supportive.
  • In precious metals, spot gold was unable to make a fresh all-time high, having respected the July peak around $2,483 so far. Clearance of this hurdle would resume the technical uptrend.
  • The yellow metal sits 0.85% lower on the session as further clues on upcoming Fed policy and the health of the US economy are awaited. Spot silver sits 1.5% lower on the session.

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