Oil: Technical indicators are mixed - BBH
|Analysts at BBH suggest that the technical indicators are mixed and with follow through selling after Thursday's 4.8% slide, the July crude oil futures contract retraced half of the rally from the early May low near $44 a barrel.
Key Quotes
“Prices then reversed higher and retraced half of the drop from Thursday's high of $52.”
“The narrow range seems to be $48-$52, and the broader range $46-$54 may contain prices. The challenge to OPEC's efforts to reduce inventories to the five-year average, as if that necessarily supports prices, is that US output continues to rise. In terms of gross supply, it has added 550k barrels a day since the end of last year, or 30% of OPEC's output cuts.”
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