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Oil Rebounds On SPR Purchases and Further Middle East Tensions

COMMODITIES
  • Crude heads towards the US close near session highs, with sizeable gains supported by both the announcement that the US will buy 3m bbl for the SPR and widening Middle East tensions.
  • WTI is +3.4% at $72.80 as it pushes back closer to yesterday’s high but doesn’t test resistance at $75.64 (50-day EMA).
  • Brent is +3.2% at $78.34 but remains off a key short-term resistance at $81.45 (Dec 26 high).
  • Gold is -1.0% at $2038.49 despite the heightened geopolitcal tension, coming under pressure from another push higher in the USD index. It’s low of $2030.7 pushed through support at $2034.6 (20-day EMA) to open $1973.2 (Dec 13 low).
  • A terrorist attack near the grave site of Iranian commander Qassem Soleimani in the central Iranian city of Kerman had added to tensions in the Middle East.
  • The Houthi rebels have fired three missiles a Malta-flagged boxship near its port quarter, according to reports from security firm Ambrey.
  • Libya oil protests are forcing the partial reduction in production at Libya’s 300k b/d Sharara oil field, according to two engineers cited by Reuters.
  • The US is seeking up to 3 bbl of sour crude for the strategic petroleum reserve, according to a notice by the US Department of Energy.

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