Crude Range Trading While Watching And Waiting

Crude has held onto most of Wednesday’s gains during today’s APAC session. After rising around 2% prices are down around 0.3% today. Brent is down to $89.87/bbl, close to the intraday low of $89.78 after rising to $90.33 early in the session. WTI is at $85.22, close to the low of $85.08, after a high of $85.59. The stronger dollar has weighed on prices with the USD index +0.2%.

• The market remains nervous re events in the Middle East after Israeli PM Netanyahu said there would still be a Gaza ground offensive. Such a move could see the conflict spread outside of Israel/Gaza and world leaders are trying to change Netanyahu’s mind.
• Events in the Middle East have added a “war premium” to crude but Bloomberg is reporting that physical prices are easing as refiners reduce gasoline production ahead of the northern hemisphere winter.
• Later Fed’s Waller gives opening remarks and in terms of data there is Q3 GDP which is expected to be strong, September durable orders and jobless claims. The ECB meets and is expected to leave rates unchanged (see MNI ECB Preview). The decision will be followed by President Lagarde’s press conference.