Oil Recovers as U.S. Refining Takes of it’s Waterwings
|U.S. refining makes a rapid comeback in a supportive development for WTI in particular.
Oil traded positively on Friday with WTI, in particular, the star, pulling itself up off the floor as U.S. refining production restarts in earnest following the passing of Hurricane Harvey. With the storm having passed, it appears that damage to refining capacity is minimal and with only 5.50% now offline from fully 25% a week ago, traders are hopeful that crude backlogs will be cleared, taking the pressure of both WTI and gasoline futures. The Brent/WTI spread has also closed from a six dollar premium to an only four dollars this morning.
WTI
WTI spot trades unchanged in Asia at 47.50 having regained its 100-day moving average at 47.30 in a positive technical development. Support is at 46.50 with resistance at 48.70.
WTI Daily
BRENT
Brent spot continues to trade constructively to start the week, opening at its previous longer term resistance at 52.70. It now appears poised to attack resistance at 53.50 which could begin a move to the 55.00 area. Support appears at 52.40 initially.
Brent Daily
Both contracts will be vulnerable to North Korean headlines this week, with any signs of escalation from this weekend’s events potentially giving the oil a significant tailwind.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.