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OIL: Crude Sharply Off Intraday Highs As Iran Supports Deescalating Tensions

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Oil prices are slightly lower after falling sharply from intraday highs after Iran said that it is prepared to defuse tensions between Israel and Hezbollah, who it supports, as long as Israel does the same. There were major Israeli strikes on targets in southern Lebanon yesterday. The USD index was unchanged.

  • WTI rose to a high of $71.81/bbl, above initial resistance of $71.53, before falling to $69.49. It finished down 0.4% to $70.73 but is currently lower at $70.56. The benchmark is down 2.6% this month and 10.5% since end June. Initial support is $67.58.
  • Brent is down 0.2% to $74.33/bbl after a peak of $75.17, just short of initial resistance, followed by a low of $73.10. The downtrend remains intact but still remains oversold. Initial resistance is at $75.18 and the bear trigger is $68.68.
  • China cut the 14-day repo rate 10bp on Monday and a press conference on the economy will be held today at 9am local time. The market is hoping that further stimulus will be announced. Oil has been concerned about demand from China for some time.
  • The Gulf of Mexico is preparing for another hurricane with Shell reducing production at its Appomattox facility. 
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Oil prices are slightly lower after falling sharply from intraday highs after Iran said that it is prepared to defuse tensions between Israel and Hezbollah, who it supports, as long as Israel does the same. There were major Israeli strikes on targets in southern Lebanon yesterday. The USD index was unchanged.

  • WTI rose to a high of $71.81/bbl, above initial resistance of $71.53, before falling to $69.49. It finished down 0.4% to $70.73 but is currently lower at $70.56. The benchmark is down 2.6% this month and 10.5% since end June. Initial support is $67.58.
  • Brent is down 0.2% to $74.33/bbl after a peak of $75.17, just short of initial resistance, followed by a low of $73.10. The downtrend remains intact but still remains oversold. Initial resistance is at $75.18 and the bear trigger is $68.68.
  • China cut the 14-day repo rate 10bp on Monday and a press conference on the economy will be held today at 9am local time. The market is hoping that further stimulus will be announced. Oil has been concerned about demand from China for some time.
  • The Gulf of Mexico is preparing for another hurricane with Shell reducing production at its Appomattox facility.