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Oil Extends Dip Ahead of Expected Fed Hike

OIL

Crude has further extended its declines ahead of the expected Fed rate hike. The market has been selling off this week on fears about global oil demand.

  • Morgan Stanley analysts lowered their year-end outlook for Brent crude to $75/bbl from $87.50/bbl, saying forecasts for declines in Russian supply are too high while the demand boost from China's re-opening after lifting COVID restrictions has largely played out.
  • Crude markets fell after the earlier EIA release despite a small US crude inventory draw as oil product implied demand fell on the week.
  • Brent JUL 23 down -4.7% at 71.78$/bbl
  • WTI JUN 23 down -5.1% at 68.04$/bbl

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