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Nerves Drive Crude Lower As Waiting For China Stimulus

OIL

Oil prices have given up most of last week’s gains and today are down around 1.5% on the generally weaker risk tone in Asia as markets wait for details on any further policy stimulus in China. The USD index is 0.1% higher.

  • WTI is down below $71/bbl again and is currently trading around $70.96, close to the intraday low of $70.82. Brent fell below $76 and is now about $75.48, after a low of $75.34.
  • WTI futures contracts are continuing to signal that there is plenty of supply currently. Demand remains an issue for the market as the full impact of monetary tightening is yet to be felt and China’s growth forecasts are being revised down. But the IEA and OPEC expect the market to be in deficit in H2 2023.
  • There is little on the calendar later with the US closed today.

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