Oil gives back gains to wrap up a strong week

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A look at oil

WTI crude settled down $1.43 to $63.58 today, a 2.2% drop.

The decline comes after three solid days of gains in a row. The bulls continue to point to reopening demand while the bears point to new covid shutdowns and the OPEC+ overhang. In terms of market balance, global inventories are back to the five-year average but they’re notoriously hard to calculate and one of line thinking is that larger Chinese inventories are more of a strategic reserve than a tactical commercial build.

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