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Holds Gains But Weakens Following Disappointing US Data

OIL

Oil prices held onto their gains following OPEC+’s decision to reduce output by 1.1mbd but did come off intraday highs following the disappointing US job openings data. Brent is at $84.94/bbl down from its $86.04 intraday high and WTI +0.7% to $81.02 down from $81.81. The USD index was 0.5% lower.

  • WTI’s intraday high forms the new resistance, with $83.04, the January 23 high, key after that. Resistance for Brent remains at $86.44, the April 3 high, with $87.87, the January 27 high, following.
  • The API US inventory data reported a crude drawdown of 4.3mn barrels in the latest week with a 4mn decline in gasoline and -3.7mn for distillate, according to Bloomberg citing people familiar with the data.
  • Exxon Mobil has said that it will begin reopening its oil plant near Le Havre in France following recent protests/strikes.
  • An agreement has been reached for 500kbd of oil from Iraqi Kurdistan to be shipped from Turkey but the announcement was largely overlooked by the market in the wake of OPEC+’s decision.

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