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Crude Regains Ground with Focus on Upside Risks

OIL

Crude futures have regained ground back towards flat on the day as the Brent prompt time spread extends gains amid market upside risks. A possible OPEC+ cut extension widely expected in early March and ongoing Red Sea shipping disruption are offsetting potential for delayed US interest rate cuts and slow growth in China.

  • The prompt Brent time spread is trading at the highest since October ahead of the Apr24 contract expiry tomorrow while the Jun24-Dec24 spreads are at the highest since September.
  • Technicals show key short term resistance at the Jan. 29 high of $84.17/bbl with support down at the 50 day EMA of $80.73/bbl.
    • Brent APR 24 down 0% at 83.61$/bbl
    • Brent MAY 24 down -0.2% at 82.48$/bbl
    • WTI APR 24 down -0.1% at 78.79$/bbl
    • Brent APR 24-MAY 24 up 0.15$/bbl at 1.14$/bbl
    • Brent MAY 24-JUN 24 up 0.02$/bbl at 0.66$/bbl
    • Brent JUN 24-DEC 24 down -0.03$/bbl at 3.46$/bbl

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