9 Jul 2014
Brent back to pre-crisis levels
FXStreet (Łódź) - Independent Analyst Malcolm Graham-Wood suggests that the next key support for Brent is at $108 as inexperienced traders head for the hills and long liquidation means that support levels are being taken out.
Key quotes
"With supply still plentiful and Libya increasing everyday there is no reason to think that the price will bounce quite yet, also the pro’s in the oil market know a hedge fund manager running scared when they see one."
"With the API stats showing a crude draw of 1.7m barrels, WTI, albeit short of consensus forecasts of 2.75m barrels, is showing relative strength and the differential has come back to only just over $5."
"In its short term energy outlook the EIA has slightly raised its price forecasts for this year
and now have WTI at $100.98 and Brent at $109.55."
"The numbers for US domestic production remain robust, 8.5m b/d for this year and 9.3m for next which are the highest numbers since 1972."
"More interesting is the stat about total US liquid fuels consumption by imports, having been 60% in 2005 and 33% in 2013 the EIA expect that figure to fall to 22% next year, the lowest since 1970."
Key quotes
"With supply still plentiful and Libya increasing everyday there is no reason to think that the price will bounce quite yet, also the pro’s in the oil market know a hedge fund manager running scared when they see one."
"With the API stats showing a crude draw of 1.7m barrels, WTI, albeit short of consensus forecasts of 2.75m barrels, is showing relative strength and the differential has come back to only just over $5."
"In its short term energy outlook the EIA has slightly raised its price forecasts for this year
and now have WTI at $100.98 and Brent at $109.55."
"The numbers for US domestic production remain robust, 8.5m b/d for this year and 9.3m for next which are the highest numbers since 1972."
"More interesting is the stat about total US liquid fuels consumption by imports, having been 60% in 2005 and 33% in 2013 the EIA expect that figure to fall to 22% next year, the lowest since 1970."