Oil: Prices shellacked last week with more than 9% drop - BBH

Research Team at BBH, notes that the oil was shellacked last week with more than  9% drop as the heavier dollar was insufficient to offset the poor technicals, record jump in US inventories, and increasing doubts about OPEC efforts to rein in supply. 

Key Quotes

“The December futures contract declined by the most since January.  The two-week nearly 14% decline brought the price to almost $43.50, a nearly three-month low.  There is little chart support between $43.30 and $42.00.   There is scope for additional declines, but we are becoming more cautious after having anticipated the decline in mid-October when prices were still near $50 a barrel.   The drop has pushed prices below the lower Bollinger Band ($44.55), and the Slow Stochastics warn of downside scope at this juncture.”