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Crude Down As Market Looking For Clarity On Demand Outlook

OIL

Oil prices fell before equities sold off, as US and global growth uncertainties continued to make the market nervous. WTI fell 2% and is now around $77.30/bbl and Brent -2.4% and is $80.77. The USD index rose 0.5%.

  • WTI remains above its 50- and 100-day moving averages but Brent is below both. WTI is approaching support at $75.83, the March 31 high, and Brent is moving towards $79.95.
  • According to Bloomberg and people familiar with the data, API reported a large 6.1mn barrel drawdown in US crude stocks last week but this news didn’t help to support prices. Distillate inventories rose 1.7mn and gasoline fell 1.9mn. The official EIA data is out later today.

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