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Edges Up From Recent Lows

OIL

Brent crude sits a touch above recent session lows (near $79/bbl). The benchmark last near $79.35/bbl. Oil wasn't immune from the risk off in equity markets late in US trade on Wednesday. Earlier highs came in at $80.60/bbl. For WTI we last tracked near $73.85/bbl, down from earlier session highs above $74/bbl, but also above Wednesday lows. Some USD weakness has helped at the margins (BBDXY -0.18%).

  • Outside of equity market risk jitters on Wednesday we saw US supply temper bullish oil sentiment.
  • EIA Weekly US Petroleum Summary - w/w change week ending Dec 15: Crude stocks +2,909 vs Exp -2,355, Crude production +200, SPR stocks +629, Cushing stocks +1,686
  • Still, oil benchmarks are comfortably tracking higher for the week at this stage.
  • Elsewhere, focus will remain on tensions in the Red Sea. Yemen’s Houthi rebels have vowed to continue targeting ships in the Red Sea despite the planned US-led naval task force to secure the area, according to Bloomberg.

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