Oil: Firm USD has not derailed the recovery in prices - BBH

Research Team at BBH, suggests that the firmer US dollar has not derailed the recovery in oil prices and the July contract flirted with the $50 barrel level but the market could not sustain the initial thrust. 

Key Quotes

“The pullback was shallow.  Supply disruptions (and the drawdown in US inventories) appear to be the fundamental catalyst. OPEC is unlikely to reach an output freeze agreement. The RSI and MACDs suggest the market is stretched, but have yet to turn down. We will be on the lookout for a reversal pattern after the strong run-up.”