Oil: Technical indicators are mixed - BBH

Sandeep Kanihama FXStreet Contributor

Analysts at BBH suggest that the technical indicators are mixed and with follow through selling after Thursday's 4.8% slide, the July crude oil futures contract retraced half of the rally from the early May low near $44 a barrel.

Key Quotes

“Prices then reversed higher and retraced half of the drop from Thursday's high of $52.”

“The narrow range seems to be $48-$52, and the broader range $46-$54 may contain prices. The challenge to OPEC's efforts to reduce inventories to the five-year average, as if that necessarily supports prices, is that US output continues to rise. In terms of gross supply, it has added 550k barrels a day since the end of last year, or 30% of OPEC's output cuts.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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