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Oil Hangs On For Gains Despite Fed, Ukraine Ceasefire

  • Crude oil prices have yet again been supported by mounting geopolitical fears.
  • There has however been recent weakness after Russia’s Kozak said that Ukraine talks in Paris have agreed a ceasefire in Eastern Ukraine should be observed, with the headline hitting in Powell’s conference.
  • WTI is +1.1% at $86.55, having broken two resistance levels in earlier of $87.1 (Jan 20 high and bull trigger) and $87.47. Next resistance was the psychological $90 whilst initial support is $81.90 (Jan 24 low).
  • $80/bbl and $85/bbl puts have been the most active strikes in the H2 contract today.
  • Brent is +1.1% at $89.16, having also broken two resistance levels earlier. Next resistance was viewed at $91.29 (2.00 proj of the Dec 2-9-20 price swing).
  • Gold meanwhile is -1.7% at $1816.8, with the decline starting well prior to the Fed and then falling further as the FOMC indicated it will start hiking soon. Support is next seen at $1805.9 (Jan 18 low).

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