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Crude Futures Edge Lower

OIL

Crude futures are slightly lower in Asia, dropping after faltering ahead of the week's highs; WTI is down $0.26 from settlement levels at $74.99/bbl, Brent is down $0.20 at $76.31. Despite the drop both benchmarks continue to recover off last week's lows, with Brent (U1) key resistance defined at $77.84, Jul 6 high. Key support undercuts initially at $72.11, Jul 8 low. WTI (Q1) key resistance is at $76.98, Jul 6 high and the bull trigger. Initial firm support lies at $70.76, Jul 8 low. Focus Wednesday turns to the weekly DoE inventory data, with markets expecting another draw of over 4mln bbls for the headline crude numbers. If the print matches estimates it would be eight consecutive weekly decline in stocks. Inventory figures from API yesterday showed crude stocks fell 4.079m bbls, while stocks at Cushing, OK fell 1.59m bbls.

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