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Crude Holding Friday’s Gains But Trading In Narrow Range

OIL

Oil prices have been in a narrow range during APAC trading after rising strongly on Friday. WTI has held above the important $85 level to be up 0.1% to $85.61/bbl. It reached a high earlier of $86.09 but couldn’t sustain moves above $86. Brent is slightly higher at $88.57. It made a high of $88.95 but has been unable to breach $89. The USD index is down 0.1%.

  • Oil has been supported by OPEC+ cuts. Russia’s announced an extension of its reductions and Saudi Arabia’s are expected to be lengthened into October. More details of Russia’s plans are due to be announced soon. Financial metrics are also signalling a tightening of the market. Hopes that the Fed has finished tightening are also providing support.
  • The US is closed today and so crude markets are likely to be thin. ECB President Lagarde, members Lane, Panetta and Elderson and Bundesbank President Nagel all speak later.

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