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Oil Benchmarks Set To Confirm Break Above Short-Term Ranges

COMMODITIES
  • Brent and WTI Crude Prices gained over 5% on Wednesday, active contracts strengthening to $66.75 and $63.25 respectively. Benchmarks are set to break out of most recent tight ranges, posting the highest closes since March 17th.
  • Prices extended gains as weekly EIA data showed a much larger-than-forecast, 5.9M barrel drop in US crude-oil inventories. Additionally, the rally was bolstered after the monthly IEA report released forecasts of a significant rise in global oil demand in the second half of the year.
  • WTI crude futures face next resistance at the March 18 high of 64.88 ahead of the key bull trigger above at 67.70 - the Mar 8 high.
  • Despite the softer dollar, gold fell on Wednesday as an uptick in U.S. Treasury yields weighed on bullion's appeal. Spot gold dropped around 0.5% to $1736. Spot silver consolidated yesterday's gains and was broadly unchanged on the session.
  • Copper prices firmed 2.5% as Goldman Sachs released a note doubling down on their bullish outlook for the base metal. Analysts raised 12-month target to $11,000 and projects prices will hit $15,000 by 2025 as the global green-energy transition propels demand for the metal used in power grids, wind turbines and electric vehicles.

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