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Oil Slides With Broader Risk-Off Sentiment

COMMODITIES
  • Oil futures are down 2% today in a broader risk-off environment, breaking through its recent range from the past week or so. Declines have been across the curve.
  • Russia’s Sorokin says OPEC+ still plans its next meeting on Jan 4 and not earlier, pushing back on headlines from Saudi yesterday that the December meeting is “truly not suspended”.
  • Separately, Biden is said to not be considering reinstating the crude oil export ban.
  • WTI is -1.9% at $69.9, close to the first support level of $69.52 (Dec 7 low) after which the next support is materially lower at $65.6 (Dec 3 low). Resistance is up at $74.4, the 50-day EMA.
  • Brent is -1.9% at $73.0, through first support of $73.2 (Dec 7 low) with the next support at $69.24 (Dec 3 low).
  • DOE inventories tomorrow plus USD risk from the Fed at 1400ET/1900ET.
  • Gold is down -0.7% at $1774, at the low end of the recent range and exposing the base of the bull channel of $1767.2 drawn off the Aug 9 low.

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