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Crude Trades Lower in Volatile Session

OIL

Crude markets are trading lower on the day in a volatile trading session with Brent front month ranging between $77.52/bbl and $79.72/bbl. A higher US Dollar and stronger than expected non-OPEC supplies have been weighing on prices to offset OPEC production cuts, which have created uncertainty in the market over future compliance by member states.

    • Brent FEB 24 down -0.3% at 78.64$/bbl
    • WTI JAN 24 down -0.5% at 73.72$/bbl
  • Crude prices also received some support over disruption to shipping from the Middle East after Houthi rebels targeted three commercial shipping vessels in the Red Sea on Sunday.
  • USD: The 0.5% move higher for the USD index is broadly a function of yield differentials, with Fed ’24 pricing moving away from Friday’s dovish extremes as participants continue to assess the viability/speed of the Fed easing priced into markets. The associated extension of post-inflation Euro weakness and heavy price action for equities are also assisting the greenback recovery.

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