Snapshot: Brent crude is trading at $104.48, up 2.57% after news broke that the UAE will leave OPEC. The move underscores long-standing frustrations with production quotas and is expected to ease global supply constraints. Focus now shifts to the US CB Consumer Confidence release at 10:00 ET.
- A break above $105.81, the intraday high, would open the door to further gains, potentially targeting $110.
- Risk of profit-taking remains elevated following the initial surge, especially if the US Consumer Confidence data disappoints.
Bias into NY: Bullish on Brent as the UAE’s departure from OPEC alleviates supply concerns; resistance sits at $105.81 and a sustained break there targets a move towards $110. The DXY at 98.58 is offering some headwind but the dominant driver is the UAE news.