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Risk On Sentiment Supports Commodity Complex


WTI and brent have diverged on Tuesday, WTI is down around $0.11 at $52.25 while brent is $0.24 higher at $54.99. Brent is supported by broad risk on sentiment in Asia, while in WTI there was no settlement on Monday as US markets were closed for a public holiday. Front-month February WTI futures expire on Wednesday.

  • Data released yesterday showed China's refinery output rose 3% to a new record in 2020, painting a positive picture for the world's top crude oil importer.
  • Global demand concerns are capping upside as Japan deals with the latest wave of infections and China reports a flurry of new Covid-19 cases. Data yesterday also showed nascent demand issues in India, sales of transport and cooking fuels over the first two weeks of 2021 declined M/M.
  • Market participants will look ahead to the IEA monthly crude inventories report after market today.

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