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Oil Prices Softer As Supply Fears Still Weigh

COMMODITIES
  • Oil prices continue to be weighed down by the previously announced release of IEA reserves along with further USD strength. Despite today's sell-off in long-end Tsy yields and the curve steepening, a hawkish Fed could conceivably be seen weighing on demand ahead.
  • The Senate and House have passed the previously announced ban on Russian oil imports, with news that the House done so boosting prices before it was quickly reversed.
  • Separately, the EU has backed an embargo on Russian coal.
  • WTI is -0.8% at $95.46, with an earlier low of $93.81 comfortably through initial support at yesterday’s low of $95.73. Next support is eyed at the bear trigger of $92.20 (Mar 15 low).
  • Brent is -1.0% at $100.1, also through support from the 50-day EMA and Apr 6 low between 100.54-59, next opening key support at $94.61 (Mar 16 low).
  • Gold is +0.5% at $1934.4 as it edges nearer to resistance seen at $1966.1 (Mar 24 high) whilst support remains the bear trigger of $1890.2 (Mar 29 low).

Source: Bloomberg

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