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Surprise Stock Build Sees Crude More Than Reverse Gains

COMMODITIES
  • Crude oil futures have erased all earlier gains from Middle East supply worries after the large and unexpected build in US crude stocks
  • EIA Weekly US Petroleum Summary - w/w change week ending Jan 05: Crude stocks +1,338 vs Exp -199, Crude production 0, SPR stocks +606, Cushing stocks -506
  • The arbitrage window pulling cargoes from the US to Asia has closed due to surging freight rates caused by a jump in vessel bookings, according to Reuters.
  • WTI is -1.2% at $71.40 but remains above yesterday’s low and doesn’t trouble technical levels. The trend signal remains bearish, with support at $69.28 (Jan 3 low).
  • Brent is -1.0% at $76.81 and although doesn’t test yesteday’s low or support at $74.79 (Jan 3 low).
  • Gold is -0.3% at $2024.00, initially supported on geopolitical risks before fading into the session despite a softer USD index. The yellow metal is approaching support at the 50-day EMA of $2012.8. Tomorrow's US CPI looms on the horizon.

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