8 Apr 2015
Oil prices flirting with an upward break of 100 DMA – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, believes that both WTI and Brent are seen as having bottomed, back at levels where they started the year end.
Key Quotes
“Oil prices are back to where they began the year, highlighting a more moderate environment.”
“Since reaching its low on March 18th (noteworthy as it was the FOMC day) of $42.03, WTI has rallied 26%; whereas Brent reached its $45.19 low on January 13th and has subsequently rallied 29%.”
“Both WTI and Brent have broken above their 50‐day MA and are now flirting with their 100‐day MA (at $54.19 for WTI and $59.27 for Brent); and both are increasingly seen as bottomed.”
“Today, the release of U.S. inventories is expected to show a significant build; however the market is also focused on production, which had been rising even as oil prices were collapsing.”
“However recently production has finally slowed, which has been an important component of the day’s reaction to the DOE release. Accordingly, today’s weekly data release is likely to be important for WTI prices (and currencies like CAD) but the market will look to both the inventory and production numbers.”
Key Quotes
“Oil prices are back to where they began the year, highlighting a more moderate environment.”
“Since reaching its low on March 18th (noteworthy as it was the FOMC day) of $42.03, WTI has rallied 26%; whereas Brent reached its $45.19 low on January 13th and has subsequently rallied 29%.”
“Both WTI and Brent have broken above their 50‐day MA and are now flirting with their 100‐day MA (at $54.19 for WTI and $59.27 for Brent); and both are increasingly seen as bottomed.”
“Today, the release of U.S. inventories is expected to show a significant build; however the market is also focused on production, which had been rising even as oil prices were collapsing.”
“However recently production has finally slowed, which has been an important component of the day’s reaction to the DOE release. Accordingly, today’s weekly data release is likely to be important for WTI prices (and currencies like CAD) but the market will look to both the inventory and production numbers.”