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Oil Boosted By Inventory Drain

COMMODITIES
  • Oil futures have edged above where they started today after a surprisingly large drop in US crude oil inventories saw them go bid (-4,584k vs -1,651k exp), even if they remain a little below yesterday’s settlement.
  • WTI is -0.3% at $70.5, and with moving average studies pointing lower. First support is seen at $69.51 (Dec 14 low) with major support at $62.43, the Dec 2 low and bear trigger.
  • Brent is -0.2% at $73.5, where a deeper retracement after yesterday’s decline would signal scope for a test of the support at $69.23 (Dec 3 low) with major support at $62.95, the Dec 2 low and bear trigger.
  • USD risk from the Fed at 1400ET/1900ET.
  • Gold is down -0.2% at $1766.8, challenging the base of the bull channel drawn from the Aug 9 low of $1768. A clear breach and a break of $1762 (Dec 2 low) would strengthen the bearish theme.

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