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Oil Ending A Strong Week On A Softer Note

  • Crude oil prices have dipped between 0.5-1% today after a string of daily gains that still leaves WTI up 4.5% on the week.
  • Prices were initially supported by lower production in both Kazakhstan and Libya before easing after softer-than-expected US payrolls (at least at a headline level) and Germany announcing tighter Covid curbs for restaurants and bars. More optimistic headlines from South African research didn't seem to have much impact.
  • WTI is -0.9% at $78.8, firmly between resistance at $81.73 (Nov 10 high) and support at $76.73 (Jan 6 low).
  • The most active strikes in the G2 (Feb'22) contract have been $83/bbl, $80/bbl and $82.5/bbl calls.
  • Brent is -0.4% at $81.7, closer to first resistance of $83.11 (Nov 10 high) than support of $79.51 (Jan 5 low).
  • Gold meanwhile is up +0.4% at $1797.7 having earlier tested key support at $1782.3. Initial resistance is seen at $1811.6 (Jan 6 high) with key resistance at $1831.9 (Jan 3 high).

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