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Crude Tracking Sideways After Strong Rally

OIL

Oil prices are range trading today after rising strongly on Tuesday due to positive demand developments and some supply outages. WTI is up 0.2% to $77.30/bbl and Brent is +0.1% to 83.75/bbl. The US is slightly weaker today.

  • WTI oil prices are approaching their 50-day simple MA while Brent is above. Resistance for WTI is at $78.39, the 50-day EMA, and support is at $72.25. Brent is close to resistance at $84.08, while support lies at $79.10.
  • The oil market wasn’t rattled by Fed Powell’s comments as he talked about disinflation but also that rates needed to rise further. It was more interested in the EIA cutting its US crude output forecast for 2024.
  • Later today the highlight of the calendar is a number of Fed speakers, as the only data is wholesale inventories. EIA US fuel stock data is also released. The API data showed a 2.2mn bbl drawdown after several weeks of build.

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