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WTI underperformed Brent overnight, with the....>

OIL
OIL: WTI underperformed Brent overnight, with the former shedding ~$1.30 vs.
settlement levels against Brent's relatively modest losses of ~$0.30.
- That would suggest that storage matters and the supply glut surrounding the
U.S. has outweighed the latest pullback in the weekly Baker Hughes rig count
data, with increased worry re: bankruptcies in the sector potentially adding
further pressure.
- Elsewhere, signs that Kuwait & Saudi have started to pull back on production
ahead of the implementation of the global producer production pact likely
provided some support for Brent.
- Short term focus now falls on the possibility of U.S. state aid for the
sector.
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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