The Gulf Intelligence
 
NEWS HIGHLIGHT:
Exclusive: Moscow lawyer who met Trump Jr. had Russian spy agency as client ... Sean Spicer resigns as Trump seeks to repair public image ... Special counsel asks White House to save Trump Jr., Russian meeting documents ... Trump picks financier Scaramucci to head White House communications: official ... U.S. State Department to ban American travel to North Korea ... Global pizza brands battle for Russia's far-flung regions ... Iran skips opportunity to upset nuclear deal over U.S. sanctions: sources ... GE shares fall as profit slumps, investors await new CEO's targets ... Transgender activists tell Texas Senate to ditch bathroom bill ... U.S. police seek missing Burundi students near Canada border ...
Where am I? bullet

Daily Oil Commentary by Matt Stanley


06/04/2017
By:Matt Stanley

Morning all. Brent closed last night at $54.36 up 0.19 and WTi closed up 0.12 at $51.15. Yesterday the more eagle eyed reader of my nonsense may have noticed that I said that APi predicted a build on crude on Tuesday evening. In fact APi said the opposite and they predicted a draw. But what happened? EIA showed that crude numbers built last week. So did my error even really matter? Or was it even an error? I think what it does highlight is that the market blatantly expects demand to pick up and it bought in to it like a teenager in a pub who has just turned 18. When the opposite of what was expected was announced Brent quickly retreated and at one point when negative on the day before closing marginally up. So what next? Well i think it certainly put a halt to the rally we have witnessed over the last week and it made people think "Oh noooo, we're at 55!". So it may be that 55 is technical resistance. If you believe any of that tech stuff of course. And it also seems that technical support is $50, as was evidenced last week. So a 50-55 range? Probably but it doesn't take a genius to work that out. The thing is though that the market structure more or less across the barrel is pretty flat at the minute, this means looking at other ways and means to eek out profit and if you're a crude trader then the Brent/WTi spread down the curve certainly will help any shorts you may have especially with the USA exporting more and more, albeit marginally down week on week. So rather than looking at short term demand statistics for direction i.e. EIA numbers, I think US export numbers and the arb from the US is where certain people may be looking. Good day.

 

CLICK HERE FOR FULL REPORT 

 

Last Update: 24/04/2017

Post a Comment:

Name
 
Email
   
Comment Title
 
Comments