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Lower On Skepticism Around OPEC Voluntary Cuts

OIL

WTI tracks at $75.50/bbl in early Friday trade, having seen a steeper fall Thursday (off 2.44%). We are close to unchanged for this benchmark on week ago levels.

  • OPEC announced additional voluntary cuts following Thursday's meeting, with a total reduction of 2.2m b/d, OPEC said in a statement. See this link for more details.
  • The cuts were met with market skepticism. Crude regained some ground after further details of the cuts were revealed, but it remains lower on the day. The resumption of loadings from Black Sea Ports have added some further downside.
  • For WTI, on the downside, the bear trigger lies at $72.37, the Nov 16 low. Clearance of this level would resume the downtrend.
  • Headlines crossed earlier that the US has bought 2.73 million barrels for its reserves at $79/bbl (see this BBG link).

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