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Positive Momentum Continues, WTI Hit Fresh YTD Highs

OIL

Brent crude finished Wednesday trade at $90.60/bbl, a +0.62% rise and the 7th straight session of gains. We couldn't get to fresh highs just above $91/bbl, but sentiment remained positive. WTI last tracks near $87.55/bbl, with some selling interest above $88/bbl. Still the active contract finished +1% firmer on Wednesday, marking a run of 9 straight sessions of gains. The benchmark squeezed out a fresh YTD high on Wednesday.

  • The recent decision by OPEC+ leaders Saudi Arabia and Russia to extend supply cuts to year end continues to be a key driver of sentiment. See the MNI Commodity Weekly here for more details.
  • For Asia markets, Saudi Aramco is raising its October OSP for Arab Light Crude to Asia. The 0.1ct/bbl increase to a $3.60/bbl premium is below the 0.30ct/bbl hike seen by analyst in Reuters and Bloomberg surveys. Still, this didn't impact sentiment negatively in the crude space.
  • For Brent, a move above recent highs ($91.15/bbl) would open up $92.91 (Nov 17, 2022 low). Recent lows come in around $88/bbl.

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