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WTI Trading Below $80 But Holding Onto Friday’s Gains

OIL

Oil prices are down slightly today during APAC trading and have been moving sideways since the trough earlier. They have been range trading as supply and demand issues balance out. The USD index is down 0.1%.

  • WTI is around $79.78/bbl after the intraday low of $79.70. It traded above $80 earlier in the session reaching a high of $80.42. Brent is trading around $84.39 after a low of $84.30. It made a high of $84.98 earlier.
  • Crude hasn’t been boosted by measures in China to support its property sector and equities. China is the world’s largest oil importer.
  • A tightening market due to OPEC output cuts is likely to provide support to prices through H2 2023 but there could be increased supply from Iran, Venezuela and Iraqi Kurdistan as talks in all three continue. The market remains worried about demand from China and further rate hikes in the US.
  • Later the Fed’s Barr speaks and the Dallas Fed index is released. Also Bundesbank President Nagel is due to speak.

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