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Brent backs off from fresh rebound high

Yesterday the rebound in oil prices continued and that eventually led the price of January Brent crude to above a noted reversal target, at $82.61. The high seen ahead of the NYMEX settlement was set at $82.94. Brent later settled $1,71 higher, at $82.32. It has backed off more so far today, dropping to $81.64 just now. The question now that Brent has rebounded to reach its first Fibonacci correction level, is whether or not this correction from the $76.60 low has run its course. The fact that Brent is lower this morning despite no wider change in the direction of the equity  markets is also something to consider, but there is no indication yet, that the bull run in US stocks in particular is over. The gains and fresh optimism in China is also a major factor supporting the outlook for oil prices. So, couple that with the threat of further output cuts looming from OPEC soon and the outlook for oil prices does look positive. Brent for January delivery is lower this morning, currently trading at $81.74
 

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