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Crude Weaker Again Today, Tuesday Contains Key Events

OIL

Oil is down around 0.8% during APAC trading after falling 1.1% on Friday, as the market remained nervous regarding US debt ceiling negotiations and China’s lacklustre recovery. It is now down over 5% since the May 9 close. Brent is now around $73.58/bbl while WTI is under $70 at $69.50. The USD index is flat so far today.

  • Brent and WTI remain above support levels of $71.28 and $68.43 respectively.
  • Key events for crude this week include a swathe of data relating to China’s domestic economy and the IEA monthly outlook both released on Tuesday, as the demand outlook has been a key concern for oil markets. There is also US API inventory data on the supply side.
  • Later today the European Commission releases updated economic forecasts. There is also March euro area IP data and the US New York Empire manufacturing index for May.

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