Oil made its highs of the session yesterday.....>

OIL: Oil made its highs of the session yesterday after the FOMC statement in

which the Fed left its forward guidance unchanged and committed to further asset

purchases. WTI approached, but failed to reach, levels seen on Monday while

Brent's move higher was less pronounced. However, oil failed to hold on to its

gains, beginning to descend just before the press conference started. Then

renewed concerns over increasing Covid-19 numbers in several key US states

helped to push Brent (and to a less extent WTI) to a little above yesterday's

lows at the time of writing.

- As well as the wider macro and risk picture, oil was not helped by increases

in DOE crude oil inventories. Most analysts had expected inventories to fall but

they rose more than the highest estimates of any analyst for an increase. This

follows data the previous day from the American Petroleum Institute that also

showed stockpiles of oil had increased.

- On a technical analysis front, we still see the bull trends intact despite the

pullbacks.

- At writing WTI and Brent are $1.30 and $1.50 lower on the day respectively.