Prices Softer, But Waiting For Russian Price Cap Details

Oil prices are at their intraday low following reports of violent protests at an iphone factory in China boosted the USD. WTI is trading around the NY close at around $80.80/bbl after reaching a high of $81.48. Brent is around $88.15 also below its NY close of $88.36 and its high of $88.80. Despite the current dip, crude has been trading in a narrow range.

• WTI continues its retracement from the $92.53 November 7 high and the bearish theme remains. It has been trading close to the bear trigger and support of $80.49, the October 18 low.
• The range trading generally seen today reflects the market waiting for details on the plan to cap the price of Russian crude. There were reports that Europe may soften the plan after a related set of sanctions were diluted. Russia has said it won’t export crude to countries participating in the cap. Apparently, China has reduced oil imports from Russia due to the current uncertainty.
• The API reported another drawdown of US crude inventories of 4.8mn barrels.
• Markets are also awaiting the FOMC minutes published tonight for any signs of a pivot. Global S&P preliminary PMIs print for Europe and the US. Also, a swathe of US data including unemployment claims, durable goods orders and Michigan consumer sentiment are released ahead of the Thanksgiving holidays.