Oil is still getting the proverbial tar kicked out of it as Brent is off another 1.25% after dropping 1.5% yesterday, explains the research team at BBH.
“It is the fourth consecutive decline, and it is off six of the past seven sessions. WTI is also off a little more than 1% after yesterday nearly 1.9% drop. Supply concerns appear to be the main culprit again.”
“The IEA offered an optimistic assessment of US energy output growth in the coming years. It sees the output above demand by 600k barrels a day through Q1 18. At the same time, reports suggest Russia may be balking at cutting output further or extending the production restraint. Adding insult to injury, the API estimated that US oil stocks rose 6.5 mln barrels last week, which if confirmed by the DOE today, it would be the largest increase since March. Support in the light sweet contract for December delivery is seen in the $54.00-$54.60 band.”
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