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Oil is essentially flat in Asia-Pac trade,......>

OIL
OIL: Oil is essentially flat in Asia-Pac trade, WTI last up $0.10 at $50.27,
holding gains above the $50/bbl level hit late in US trade yesterday. WTI
trended lower throughout the day touching an intra-day low of $49.20 before
jumping to a high of $50.40 and recorded the first closing settlement above the
psychological $50 mark since May 24.
- The jump higher in oil is being driven by optimism over OPEC cuts and signs of
a drop in inventories. Markets now look ahead to the API crude inventories after
market. Analysts note that DoE inventory figures have shown net declines of
26mln bbls since in the last month, and fallen approximately 10% since March.
- MNI technical analysis sees support at $50.10 hourly resistance July 31 now
support, resistance is seen at $50.70 alternating hourly support/resistance.
Immediate focus is now on the $50.70-51.30 region where the daily bear channel
top and 200-DMA are located. Bulls look for a close above the 200-DMA to
initially target $52.63 with overall focus on $54.76 Apr highs. O/B studies and
the Bollinger top ($50.43) remain concerns for bulls.

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