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Crude Recoups Some Losses Whilst Gold Clears Resistance On USD Slide

  • Crude markets have regained some of their earlier losses after first a rebound in risk sentiment with the US cash equity open and then the latest EIA data showing a larger than expected draw in crude inventories (-6,1343 vs -2,873 exp). However, it doesn’t stop US oil futures settling at their lowest in a month.
  • Saudi Arabia will likely roll over a voluntary oil cut of 1mbpd into October, amid uncertainty about supplies and as the kingdom targets drawing down global inventories further, five analysts said.
  • Global oil inventories fell sharply in the last month due to OPEC+ production cuts and resurgent demand according to Bloomberg.
  • WTI (V3) is -0.8% at $78.99, off a low of $77.62 which saw it breach support at $78.33 (Aug 3 low) and move closer to $77.36 (50-day EMA).
  • Brent (V3) is -0.9% at $83.34, off a low of $81.94 which breached $82.36 (Aug 3 low) but stopped before $81.62 (50-day EMA).
  • Gold is +1.0% at $1916.77, benefitng from the sharp reversal of USD strength from earlier in the day and a large rally in Treasuries. A high of $1920.40 cleared resistance at $1916.3 (20-day EMA) to open $1932.7 (50-day EMA).

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