Malcolm Graham-Wood
Independent Analyst
At last a rally as traders sensed some short closing yesterday and it has carried over into today, as I write WTI is $30.91 and Brent $30.84. The WTI price will be watched closely by chartists as $30.85 is the Fibonacci retracement resistance level and a close above that would please them no end. Even if the week does end up well it will be put down to transient, unimportant reasons such as the cold weather about to hit the North East of the USA or maybe IS militants attacking Ras Lanuf again.
The EIA stats weren’t too clever, showing a build of 4m barrels, higher than the whisper of 2.8m and although Cushing only added 191/- barrels the total stock of 486.5m barrels was the highest for this time of year for 80 years apparently.
And in Dav-oh where all the big chiefs are hanging out it was the turn of the Saudis to speak, they said that $30 oil is ‘irrational’ and that whilst the short term is ‘bleak’ the long term is much more rosy.
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