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Demand Concerns Cap Rebound

OIL

Oil is slightly below NY closing levels at present. Brent was last around $96/bbl, around -0.2% for the session so far, while WTI is back under $91/bbl, off by slightly more. This follows losses of more than 1.6% through yesterday's session.

  • For Brent dips towards $95.50/bbl were supported yesterday, so this level could be watched on the downside. Beyond that, note the 50-day MA comes in just under $94/bbl.
  • Oil could consolidate further after last week's very strong rally (+11.3% for Brent), with the OPEC+ supply meeting now out of the way.
  • Concerns this week likely rest on the demand outlook, amid global recession fears. Also, the trend move higher in Covid case numbers in China can also impact sentiment.
  • Note we don't get the API inventory report tonight in the US, as this has been delayed by a day due to the Columbus day holiday at the start of this week.
  • Tomorrow will deliver OPEC's monthly oil report, along with the EIA short term energy outlook, and the weekly API inventory data.

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