Holding Monday Gains

Brent crude sits around $82.75/bbl currently, little changed for the session. Earlier highs came in just above $83/bbl, which was right around highs from the NY session on Monday. This move also coincided with USD weakness. Still, as the dollar has stabilized somewhat, downside in oil has been fairly limited. Sessions lows were just under $82.60/bbl. WTI was last around $78.80, having followed a similar trajectory.

• Modest supply concerns may have crept back into the market, with disruptions continuing from Iraqi Kurdistan. There are also concerns over fighting in Sudan, although there is hope of a short term cease fire. API's weekly report on inventories will be eyed later in the US.
• For Brent, a clean break above $83/bbl is needed before higher levels can be eyed. Note the April 19 high came in at $85.15/bbl. Recent lows come in around the $80.50/bbl level.