Extends Rally

Crude futures have meandered higher during Tuesday's Asia-Pac session, reversing early losses as the greenback weakened. The move higher follows a rally yesterday, most notable in Brent with prices closing in on $80/bbl to hit a new 2021 high. A rise through this mark would be the first since late 2018 and comes as markets continue to price a particularly tight energy market across winter.

• The price formation Sep 21 was a doji candle, signalling scope for a resumption of gains and the contract last week breached $76.13, Sep 15 high to resume its uptrend. The move higher paves the way for a climb towards $80.00 next. A rally through here opens $80.37 and $82.61.
• The expected tightness in the market has become most evident in the UK, with queues and outages becoming common across petrol stations throughout the country. Supply chain constraints are largely being blamed, with ministers quick to reassure that stockpiles are plentiful and once demand subsides normality should follow.
• Later today the OPEC+ group will release its World Oil Outlook.