Malcolm Graham-Wood
Independent Analyst
Another down week, WTI lost $3.88 and Brent $3.73 and this morning the former is down 51 cents and the latter 96c. The net short positions in crude registered another record high and at the moment I see no reason to suddenly become a bull. There are a frightening number of technical support levels around here and every moment looks like being a Bollinger moment.
The stats on Friday should have helped, the non-farm-payroll came in at an impressive 292/- which should have pleased the Street but didnt and the rig count was also supportive. With the overall number recording a fall of 34 units to 664 and oil down 20 to 516 the oil market might have celebrated but now is no time for cheering. There will be a fall in US production but as with many things operators will want to run the shop for cash for as long as possible, only when we see rug pulling or bankruptcy will capitulation be visible.
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