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Drifting Sideways, US Inventory Data Eyed Later

OIL

Oil benchmarks sit slightly below NY closing levels from Tuesday. Brent is around $84.60/bbl (-0.15%), while WTI was just under $80.80/bbl. Brent got above $85/bbl in early trade but couldn't sustain the move.

  • Recent lows have come in between the $83/$84/bbl range, which have held since the start of the month. A move below this region would open up a move back sub $80/bbls, levels last seen in late March. On the topside, recent highs come in around the $87.50/bbl, while the simple 200-day MA is just under $88.70/bbl.
  • The main focus coming up will be the EIA weekly inventory report, out during US trade. This follows reports yesterday of a further run down in US inventories.
  • Yesterday's China data, which showed a more consumption/services led recovery, likely hasn't aided sentiment around the growth outlook. The industrial side of the economy is improving but not at the same rate as the services side.

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