Malcolm Graham-Wood
Independent Analyst
A good day for the oil price as news from Russia and China helped crude continue to consolidate at these levels. The Russian move was on two fronts, firstly as it agreed to meet other major producers ‘if asked’ and also as it has a scheduled meeting with the Saudis later this month. Having said that, positions taken during the latest Russian bombing of Syria makes me wonder quite how the Russo/Saudi axis is going to function at the moment.
The news from China appeared to help the oil market as well, demand appeared to be boosted by Government statements and also news from the Baltic Exchange gave a glimmer of hope as well. They said that supertanker rates were continuing to rise, yesterday achieving $104,256 p/d from Saudi to Japan which was last seen in July 2008 and independent commentators said that the Chinese had also been buying spot cargoes. Now ship-brokers are a funny breed but it wouldnt be the biggest surprise if there was some buying going on at these levels especially if the Chinese think that the world is too bearish about their economy…Finally the holding of Brent over $49 is keeping the technical boys very happy…and WTI chart here also worth a sneaky perusal…
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