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Oil Markets Looking At Fundamentals At Week’s End

OIL
  • Oil bounced back 1.5% to $77.18 overnight from four straight day of declines but will still end down for the week, trading at $77.33 in the afternoon session (last Friday’s close $79.68).
  • West Texas Intermediate rebounded 1.5% also to settle at $73.12 (last Friday’s close $76.65).
  • Oil prices have been dominated by concerns for Middle East tensions in the weeks prior.
  • This week prices appear to pivot more towards fundamentals with the dual forces of a slowing US economy and serious challenges for the China economic outlook.
  • Israeli negotiators are in Cairo this weekend to negotiate with Hamas in an attempt to find common ground.
  • Any agreement reached could take back some of the Middle East tensions priced into oil currently.

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