Oil: Technical indicators favor additional declines - BBH

The analysis team at BBH suggests that after the 7.4% decline in crude oil futures in the past week, technical indicators favor additional declines in the days ahead. 

Key Quotes

“The June crude oil futures dropped fell each day last week for a 7.4% decline.  It appeared trigger stop losses selling as it fell through the  the 61.8% retracement objective of the rally from the end of March low near $47.65 to April 12 high near $54.15 that was found near the $50 level. Sentiment is poor as OPEC output cuts have not reduced the record inventories, and US simply shifted some of the surplus oil into gasoline.   The next target is $48, where the trend line of the low before the output cut agreement and last month's low can be found.  Those March lows are found near $47.50.”