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OIL: Crude Extends Gains Amid Weaker USD After Soft US CPI Data

OIL

Crude markets extend earlier gains as the USD snaps lower on the soft CPI headlines and ahead of the US Fed decision later today.

  • May Core CPI 0.163% M/M (0.3% expected median, 0.28% expected unrounded, 0.3% prior)
  • Crude was already trading up on the day supported by outlooks of draws in global inventories in the second half of 2024 despite the IEA’s call for weaker demand growth this year.
  • Technicals shows the first Brent resistance is up at the 50 day EMA of $85.52/bbl and key WTI resistance  at the May 1 high of $80.62/bbl.
    • Brent AUG 24 up 1.2% at 82.92$/bbl
    • WTI JUL 24 up 1.3% at 78.95$/bbl

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