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Structural Commodity Bull Market & Brent Timespread Bacwardation Bodes Well for RUB

RUSSIA
  • USD/RUB trading higher at the open on a buoyant greenback and slip in crude futures as Chinese lockdowns rattled yesterday's upbeat demand-side outlooks.
  • GS notes key conditions for a structural commodity bull market for 2021, alongside shorter-term bullish metrics this week showing Brent timespreads holding ~1 cent in backwardation vs 7 cents at the start of the week.
  • Spot hovering above 73.4459 support, having pulled back -1.96% from the resistance channel peak noted in Monday's session.
  • May spark some tentative weekend profit-taking and choppiness today.
  • Trade balance data due 1300GMT is unlikely to be a big market mover.
  • Markets will likely dial in on $-side developments again.
  • Intraday Res1:73.5558, Res2: 73.9016, Sup1: 7.4495, Sup2: 73.1451
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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