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Mid-Session About Turn As Equities Sour

COMMODITIES
  • Crude oil prices have seen a sharp reversal of earlier further gains on China re-opening stoking demand expectations, sliding as equities fell belatedly after weaker US data in contrast to the relief rallies of recent weeks from lower Fed hiking expectations.
  • WTI is -1.1% at $79.30 off a high of $82.38 that had cleared the bull trigger at $81.5 (Jan 3 high) and next opened sights on key resistance at $83.27 (Dec 1 high). It ends an eight session streak.
  • Brent is -1.3% at $84.80 off a high of $87.85 that had cleared the bull trigger at $87.00 (Jan 3 high) and opened $89.18 (Dec 1 high).
  • Gold also reverses earlier gains with a bout of USD strength later in the session, sitting -0.2% at $1904.48 off a high of $1925.90. It doesn’t trouble support at $1874.4 (Jan 12 low) whilst resistance is intact at $1934.4 (Apr 25, 2022 high).
  • Separately for natural gas, the latest EIA STEO forecasts Henry Hub prices will average 4.9$/mmbu in 2023, more than 1.5$/mmbtu lower than in 2022. Meanwhile in Europe, cold weather pushed front TTF prices up 2.7% on the day.

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