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Further Red Sea Attacks Drive Net Increase In Crude Futures

COMMODITIES
  • Crude markets are heading for US close trading higher, although have eased back slightly amid more positive noises from Qatar regarding Hamas view on a ceasefire proposal. Nevertheless, support continues to come from further Red Sea attacks.
  • The number of oil tankers diverting around the cape of Good Hope continues to rise amid ongoing Houthi rebel attacks in the Red Sea, Oil Brokerage said.
  • Saudi Arabia needs oil prices to average at least $90/bbl for it to balance its 2024 budget, according to Fitch Ratings, boosting the chance that its output cuts will be extended into Q2.
  • WTI is +1.1% at $73.58, and Brent is +1.0% at $78.80, neither close to troubling technical levels.
  • Gold is +0.6% at $2036.9, gaining as the US depreciated through the US session. It moves away from support at yesterday’s $2015.0 but remains some way off resistance at $2065.5 (Feb 1 high).

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