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Crude Extends Decline Ahead of FOMC Meeting

OIL

Crude oil falls back down through the lows from last week as economic concerns continue to drive the bearish sentiment ahead of the possible rate hike by the US Fed tomorrow.

  • The FOMC is expected to hike rates another 25bp on Wednesday and then possibly signal that it will pause.
  • WTI is trading down through the first technical support levels of 73.93$/bbl with next support at 72.76$/bbl. Next technical support for Brent is at 76.52$/bbl.
  • Crude time spreads and diesel and gasoline margins are following the move lower.
    • Brent JUL 23 down -2.6% at 77.21$/bbl
    • WTI JUN 23 down -2.9% at 73.5$/bbl
    • Brent JUL 23-AUG 23 down -0.05$/bbl at 0.32$/bbl
    • Brent DEC 23-DEC 24 down -0.45$/bbl at 3.17$/bbl
    • US gasoline crack down -0.8$/bbl at 30.69$/bbl
    • US ULSD crack down -0.3$/bbl at 23.89$/bbl

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