Holding Recent Gains

Brent crude is tracking higher in the first part of trade for Wednesday. We were last near $78.80/bbl, around +0.20% above closing levels from the NY session. Some resistance is evident above $79/bbl from a near term standpoint. Still, Brent is around 5% firmer for the week, although most of the gains came from Monday's session. We are now back above the 20-day EMA (just under $78.50/bbl). The 50-day EMA sits higher (near $81/bbl), while the 100-day is higher still (near $84/bbl). WTI is just above $73.50/bbl.

• For Brent, moves above the 100-day EMA have generally been selling points over recent months, so we may have to see a definitive break above this level, before the medium-term outlook turns more positive.
• Outside of the more positive risk backdrop, amid generally positive equity trends, supply side issues remain front and center. Focus is likely to rest with oil inventory data out in the US later today, which follows other data released on Tuesday, which showed a sharp drop in reported inventory levels.