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Natural Gas Set For Further Upside Pressure From Freeport Delay

COMMODITIES
  • Crude oil has slipped 2.5-3% today, reversing Friday’s gains with the US out for Veterans Day with the main driver seen as fading optimism over China’s recovery from lockdowns despite equities firming after Fed VC Brainard said it would be appropriate for the Fed to soon slow its pace of hikes.
  • The EIA meanwhile showed the first US build in drilled, unfracked wells since Jun 2020.
  • WTI is -3.3% at $86.00, moving closing to key support at $84.70 (Nov 10 low).
  • Brent is -2.8% at $93.36, moving closer to a key support at $91.73 (Nov 10 low).
  • Gold is +0.07% at $1772.57 having briefly cleared Friday’s high of $1772.8 to open $1783.6 (Aug 16 high).
  • In gas space, Asian and European gas is set for an eventful open tomorrow after Freeport LNG said it will likely cancel shipments scheduled for Nov-Dec as it continues to repairs and regulatory approval, with US gas paring gains accordingly. EU TTF prices had already increased 16% today ahead of the news.

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