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Middle East Tension & Drawdowns In Industry Survey Drive Recovery From July Lows

OIL

Benchmark crude futures have rebounded from yesterday’s month-to-date lows, last trading a little over $1.50 higher on the day.

  • Our commodities team flags support from the increasing tension in the Middle East and industry data showing another US crude inventory drawdown.
  • When it comes to the former, our political risk team has noted that “Strikes On Hezbollah & Hamas Figures Changes Security Landscape”, with their full note available here.
  • The upside move in oil has been capped by ongoing demand concerns after China’s official manufacturing PMI contracted for a third straight month.
  • Initial Brent & WTI resistance is located some way above, at their respective 50- & 20-DMAs ($82.44 & $78.58).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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