December 3, 2022

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WTI crude settles near $73 in $2 decline

1 min read

Oil struggles after OPEC news

Oil initially fell on the news of a Saudi-UAE deal then rebounded above $75 before falling back below $73. Late in the day there was a report that Iraq now wants to re-base its supply and that will open a can of worms.

Interestingly, at last August oil is down $2.16 but the backwardation in the market has narrowed with August 2022 down $1.22 with a more-or-less linear path between. Today’s agreement (if finalized) means more oil in August but raises the likelihood of a tighter market in a year.

Technically, the break above $75 yesterday looked good but those hopes were crushed with today’s decline and now a top or period of consolidation is more likely.

Oil struggles after OPEC news

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