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WTI crude has continued to lead the way lower...>

OIL
OIL: WTI crude has continued to lead the way lower in Asia-Pac hours, last
dealing -$1.50 vs. settlement, while Brent sits $0.60 worse off, as crude
futures extend on Monday's losses. N.B. we are quoting Brent's July contract
here, with open interest and volume higher than in the June contract. The latter
is set to roll off the board on Thursday.
- USO's decision to roll out of its June WTI exposure has applied pressure to
the contract, pushing the open interest further back in the curve, and
re-deepening the contango structure, with the remainder of the curve trading
higher on the day at yping.
- Elsewhere, ICBC's decision to suspend fresh investment in the oil space may
limit liquidity in the Asia-Pacific time zone for now and exacerbate volatility.
- The supply glut persists, which is wreaking havoc for physical sellers as they
adjust their monthly price offerings. On the other side of the coin, all matter
of vessels are being used to store crude as storage costs sky rocket.
- The latest API inventory estimates will hit late Tuesday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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