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Crude Reverses Gains After Stock Build And Late Equity Slide

  • Crude markets are approaching US close unchanged to down slightly. Red Sea shipping risks buoyed prices, but an unexpected build in weekly EIA crude inventories trimmed earlier gains before spillover from a sharp rolling over in equity indices late in the session.
  • Yemen’s Houthi rebels have vowed to continue targeting ships in the Red Sea despite the planned US-led naval task force to secure the area, according to Bloomberg.
  • EIA Weekly US Petroleum Summary - w/w change week ending Dec 15: Crude stocks +2,909 vs Exp -2,355, Crude production +200, SPR stocks +629, Cushing stocks +1,686
  • The US will tighten enforcement of the price cap on Russian oil exports, a senior US Treasury Official said Dec. 20, cited by Bloomberg.
  • WTI is -0.1% at $73.84 after an earlier high of $75.33 cleared resistance at $74.61 (Dec 18 high) and moved closer to $76.14 (50-day EMA).
  • Brent is unch at $79.26 after a high of $80.57 cleared the Dec 18 high of $79.67 and stopped fractionally shy of resistance at $80.59 $50-day EMA).
  • Gold is -0.3% at $2033.7, fading with late USD strength. It doesn’t trouble resistance at $2054.3 (50% retrace of Dec 4-13 bear leg) or support at $1973.2 (Dec 13 low).

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