Crude edged lower as WTI & Brent both lost......>

OIL: Crude edged lower as WTI & Brent both lost $0.20 or so to trade at $65.35 &

$70.85 respectively.

- Oil ran higher on Tuesday as risk sentiment improved, geopolitical tensions in

the Gulf remained elevated and as a report suggested that Saudi Arabia wants oil

closer to $80 to support the country's budget & IPO of Saudi Aramco.

- Iran's oil minister was more measured in the Asia-Pacific time zone as he

suggested that "current oil rices are acceptable", and "all are comfortable with

the current price".

- WTI's bounce to start the new week has resulted in another aggressive rally

that sees immediate focus return to the Mar 26 high ($66.55) & the YtD cont.

high ($66.66). Bulls need a close above this region to open up a move to the Dec

01 2014 cont. high ($69.54), with daily studies perfectly placed for a fresh leg

higher. Bears now look for a close below Tuesday's hourly support ($64.37) to

gain breathing room.