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Oil Bounce Extends, Eyes Bear Channel Top

COMMODITIES
  • US energy markets trade well, with WTI crude futures extending the bounce off Friday's lows to $2.50/bbl. Strength across crude oil markets continues to play catch-up with NatGas, which holds close to $5.00/MMBtu.
  • The oil squeeze persists as markets continue to eye the particularly sluggish return of production from the Gulf following the lingering aftermath of Hurricane Ida.
  • Prices also remain supported by persistent coverage of an expected supply squeeze across Winter, with Bank of America this morning flagging the risk of $100/bbl oil prices should winter be colder than usual - with oil demand lurching higher by 1-2mln bpd.
  • Precious metals markets are more muted with gold broadly unchanged, although silver modestly underperforms.

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