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Rally Paused As Stocks Build

OIL

After rallying again on Tuesday WTI and Brent crude futures have softened slightly in Asia amid broadly negative risk sentiment in the region. US stockpile data from API after market yesterday also weighed on oil, headline inventories rose 951k bbls while downstream stocks also rose, if US DoE numbers confirm the build it will be the second straight weekly gain. Despite the move off highs crude futures are up 4.5% for the week so far. The moves follow OPEC+'s decision to keep output policy unchanged on Monday, signalling to markets that the group will tolerate restricted output in return for higher prices. The break higher this week confirms an extension of the current bullish price sequence of higher highs and higher lows and attention turns to $79.53 for WTI, a Fibonacci projection and the $80.00 psychological hurdle.

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