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Brent crude trying to find a base below $80

As you might imagine, the price action in the oil markets has remained volatile and sporadic at times. Yesterday Brent managed to forge out a base below $80, after dropping back from just shy of $81.50 into the 4pm London FX fix. Brent slipped back to as low as $79.75 just after the NYMEX daily settlement ($0.47 higher, at $80.01). However, it is on the rebound again so far today, rising to as high as $80.72 earlier. The price action is still fluid and of course hostage to whatever serious headlines emerge from the Middle East, but increasingly many in the markets are now wary of drop in demand. At the same time, the supply side is also prone to any disruption from further output cut announcements from Russia and Saudi Arabia. That said, Brent is currently giving a good impression that it might just have found some value hunters below that $80 per barrel mark. Topside resistance remains at $82.20. Brent for January delivery is currently trading at $80.35

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