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Brent Crude, under $100 a barrel?
Brent Crude has fallen through key technical levels, sliding under the $105.00 mark. The uptrend in Brent crude from July 2009 has been broken and this could result in additional weakness, initially to $103.00 and ultimately $100.00, which is Saudi Arabia’s famous line in the sand.
The weakness comes just as the price was already gathering negative momentum, largely driven by news from Libya that key oil ports in the eastern part of country may re-open. Since last summer Libyan production has gone from 1.5 million barrels per day down to almost a trickle.
Increased supplies will hit the market at a time of seasonal weak demand as refineries undergo maintenance plus falling demand as the long cold US winter finally comes to an end. In his Q2 Outlook Saxo Bank's Head of Commodity Strategy Ole Hansen says Brent CRude at under $100.00 is a "good investment". https://beta.tradingfloor.com/posts/insights-q2-commodity-outlook-taking-stock-208316
As a result the premium over WTI has narrowed to less than $5.50, a six month low.
02:39 minutes
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