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Free AccessCrude Rallies On US Debt Deal
Oil prices have taken a step up at the start of APAC trading following the US debt-ceiling agreement on the weekend. They rose over a percent on Friday with the general improvement in risk appetite as optimism grew on a deal being reached. The USD index rose off its lows to finish the day flat.
- WTI is currently trading around $73.21/bbl after closing 1.5% higher on Friday at $72.91. It is approaching resistance at $74.31, the 50-day EMA. Brent rose 1.1% to $77.12, close to the intraday high of $77.35. Resistance is $78.46, the 50-day EMA.
- The possibility of further output cuts is also supporting crude. Russia’s deputy PM Novak said that OPEC+ is unlikely to change its quotas at the June 3-4 meeting, while the Saudi energy minister warned speculators. There are signs that demand from China is improving.
- Both the US and UK are closed today and so liquidity in the oil market is expected to be thin.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.