The risk in the oil market is easing off and combined with plentiful supply in the physical market, short term demand in the market has eased. This has taken a good bit of the sting out of the market and one should bear in mind that in recent weeks there has been a significant increase in what might be called ‘non-professional oil investors’ in the market.
In the absence of any significant further geopolitical problems in Iraq any weakness in the oil price may well be led by short-term punters not normally accustomed to this market, if you know what I mean. In this respect it looks like $112 for Brent and $105 for WTI are the next support levels.
Tonight will see the API stats which analysts are expecting to show a draw of 2.5m barrels, these and tomorrow’s EIA numbers will be interesting in crude and product inventories ahead of the Independence Day holiday weekend. Finally, the US domestic gas statistics released by the EIA yesterday showed that in April of this year production was 2,080 BCF, the highest on record for April in the country.
In the absence of any significant further geopolitical problems in Iraq any weakness in the oil price may well be led by short-term punters not normally accustomed to this market, if you know what I mean. In this respect it looks like $112 for Brent and $105 for WTI are the next support levels.
Tonight will see the API stats which analysts are expecting to show a draw of 2.5m barrels, these and tomorrow’s EIA numbers will be interesting in crude and product inventories ahead of the Independence Day holiday weekend. Finally, the US domestic gas statistics released by the EIA yesterday showed that in April of this year production was 2,080 BCF, the highest on record for April in the country.
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