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Oil Prices Up Again Today But Waiting For EU And OPEC+ Announcements

OIL

Oil prices are 1.1% higher during trading today with WTI now around $79.10/bbl, close to resistance of $79.90, and Brent $84 supported by a lower USD. Overall oil has been in tight ranges, as the market awaits the EU’s decision on the oil price cap and the weekend’s OPEC+ meeting.

  • Overnight the US API data showed a crude inventory drawdown of 7.9mn barrels after a 4.8mn drop last week showing the tightness of the market. However, distillate stocks rose 4mn and gasoline +2.9mn.
  • There continues to be speculation that OPEC+ will agree to an output cut this weekend despite denials from members overnight.
  • Markets remain concerned about the demand outlook, especially from China.

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