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Energy Prices Down On Lockdown Fears

  • Brent and WTI crude futures were weighed down by lockdown fears, falling -3-3.5% as Austria re-instated pandemic measures for both vaccinated and unvaccinated populations alike.
  • News later in the day that Germany wasn't planning a "general" lockdown helped prices stabilise but no material bounce was forthcoming. Prices continued to trade heavy, with White House spokesperson Psaki reiterated that the US has been in touch with a number of countries about oil prices.
  • Brent retains a bearish near-term outlook, having broken the short-term support of $80.20 (Nov 4 low) and is closing in on the first support level of $78.42 (Oct 7 low).
  • Similar story in WTI, which at $76.24 is through $77.23 (Nov 4 low) and is approaching the first support level of $75.02.
  • Separately, gold has dipped -0.6% in recent trade to $1848.45 in a partial retracement after a clear break of resistance at $1834 last week (Sep 3 high).
  • Key event risk next week include Biden's long-awaited decision on Fed chair at some point, preliminary global PMI data on Tue and the Fed minutes on Wed before Thanksgiving in the US on Thu.

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