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Crude Supported By Technicals, Waiting For Confirmation Of Gaza Truce Deal

OIL

Crude rose close to a percent on Monday supported by technicals. Also Saudi increased the premium again on its shipments to Asia and Israel announced a limited operation in Rafah. Prices gave up gains after Hamas announced it agreed to the ceasefire proposal but they are off their lows as Israel is sending negotiators to work on the agreement as Hamas is “far from meeting” its demands. The USD index was flat.

  • WTI rose 0.7% to $78.69/bbl and is up further in today’s trading to $78.92. It reached a high of $79.09 before falling to $77.91. Initial support is at $77.96 while resistance is at $84.46.
  • Brent is 0.8% higher at $83.65/bbl. It rose to a high of $83.83 before falling to $82.77. Initial support is at $82.32 and resistance at $88.64.
  • Israel will send negotiators to Egypt to continue talks for a ceasefire. According to Reuters the deal Hamas has agreed to is a “softened” version of the Egyptian proposal though. If there is an agreement between Israel and Hamas then oil prices could fall $2-3/bbl according to Bloomberg. The geopolitical risk premium began unwinding after calm between Israel and Iran last month.
  • On Monday shipping giant Maersk said that the effects of threats to shipping in the Red Sea were widening and it sees a 15-20% cut in Asia to Europe capacity this quarter.

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