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Crude Rally Pauses Ahead of EIA and FOMC

OIL

Crude continues to ease back as the recent rally due to tighter supplies and potential China support pauses as the US Fed meeting brings weak economic growth back into focus.

  • The US Fed is widely expected to raise rates by 25bp later today with focus likely on any indication of future policy plans.
  • Near term time spreads are holding near to previous close levels supported by the lower output from Saudi Arabia and Russia, but the longer dated spreads are easing lower in line with the move in flat price futures.
  • Market focus will also be on the weekly US petroleum inventory data which is expected to show a draw in crude, gasoline and distillates with just a small rise in refinery utilisation according to a Bloomberg survey.
    • Brent SEP 23 down -1% at 82.79$/bbl
    • WTI SEP 23 down -1% at 78.83$/bbl
    • WTI-Brent down -0.02$/bbl at -3.98$/bbl
    • Brent SEP 23-OCT 23 down -0.01$/bbl at 0.38$/bbl
    • Brent DEC 23-DEC 24 down -0.22$/bbl at 4.33$/bbl
    • WTI SEP 23-OCT 23 up 0.01$/bbl at 0.44$/bbl
    • WTI DEC 23-DEC 24 down -0.25$/bbl at 4.8$/bbl

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