Whisper it very quietly….but we might just have seen the bottom for the oil price, at least for the time being. Now this is no cause for breaking out the champagne nor does it signify a meaningful rally but there are a couple of small signs that the major part of the fall has now happened. I mentioned last Thursday that we were at a very important technical level for the oil price, with Brent flirting with $82.30 which is the 50% retracement from the five year high, that day with world markets in a bad state, Brent got very close but bounced at $82.60, voilá. Today we are at $86.62 after the recent modest bounce which has been mainly Chinese inspired as i mentioned yesterday, maybe, just maybe that strategic buying has given us some downside protection. The fundamentals are still very weak, especially for 1H 2015 and we have the Iran nuclear talks and the Opec meeting to come next month though.
The API inventory stats showed a rise in crude stocks of 1.2m barrels, short of the 2.7m whisper, EIA tonight to confirm but gasoline and also distillates now will also be interesting.
The API inventory stats showed a rise in crude stocks of 1.2m barrels, short of the 2.7m whisper, EIA tonight to confirm but gasoline and also distillates now will also be interesting.
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