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Crude Range Trading Ahead Of Fed


Oil prices are marginally higher in the APAC session after falling on Tuesday. They have been range trading ahead of the Fed decision later today. The USD index is slightly higher.

  • Brent is 0.3% higher at $85.25/bbl. It reached a high of $85.58 before the Caixin China PMI but was already declining before the data was published. It fell to a low of $85.14 after the release. WTI is up 0.2% to $81.14/bbl after an intraday low of $81.03. With China’s PMI below 50, there is limited upside to crude as it is the largest importer.
  • The attention of the oil market has returned to demand, particularly with the Fed and payrolls this week, as the situation in Israel/Gaza seems to be contained for now. US Secretary of State Blinken will return to the region including Israel to continue his efforts to ensure the conflict doesn’t spread.
  • BP has said that gasoline and diesel is currently oversupplied, according to Bloomberg.
  • Bloomberg reported that US crude inventories rose 1.35mn barrels in the latest week according to people familiar with the API data. The official EIA data is out later.
  • Markets are looking to today’s Fed meeting and press conference (see MNI Fed Preview). Also October US ADP employment and manufacturing ISM print.

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