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Oil Clears Further Resistance Levels

  • Crude oil prices are up 1.3-1.9% today, helped by weekly DoE data showing a far larger-than-expected draw in US crude inventories to the lowest since Oct 2018.
  • WTI is +1.9% at $82.77, clearing two resistance levels including major resistance of $82.13 (Oct 25 high). Next resistance is seen at $83.71 (1.618 proj of the Dec 2-9-20 price swing).
  • Consistent with the move being supported by an inventory drag, gains are concentrated in front-dated contracts.
  • Brent is +1.23% at $84.77, also clearing a new resistance level after yesterday's major resistance. It next eyes the round $85 and then $85.80 (1.5 proj of Dec 2-9-20 price swing).
  • Gold meanwhile is up +0.25% at $1826.2, having signalled scope for a climb towards key near-term resistance at $1831.9 (Jan 3 high). A reversal could open $1800.2 (Jan 11 low).

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