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6 Jan 2015
WTI takes out the big figure, falls below $50/bbl – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood, notes that Crude oil bulls can hang their hat on for now as the oil fall continues with WTI taking out the $50/bbl level, trading at $48.72/barrel at one point.
Key Quotes
“Forget the prices above which are last nights close in the US, forget even the modest rally that took place in the Far East this morning, as I write WTI is trading at $48.72 and Brent at $51.41. Not only has WTI taken out the new big figure but Brent probably will anytime soon, indeed puts for June have traded in the $20-30 range on some markets.”
“The Saudis have announced their pricing for February which as usual ties in with the model, lower for Europe and higher for Asia whilst for the USA apart from some increase on heavy crude all the rest of the prices are down.”
“There is simply nothing at the moment that the bulls can hang their hat on, nor will there be quite yet, looking at surveys gives a little hope, the Baker Hughes rig count fell another 29 rigs last week to 1,811, still interestingly above this time last year but 113 down on the month.”
“Canada is more telling, down 48 at 208 and is well below this time last year, their market is fragile I suspect. The weekly retail gasoline prices should be feeding through to the economy by now, at $2.21 a gallon is down another 8.5c on the week, $1.18 on the year, do the math as they say, 50bn miles a month times that saving…”
“We are however getting closer to one or two longer term support levels so if you are looking for a straw to cling on to you need WTI to defend $45.”
Key Quotes
“Forget the prices above which are last nights close in the US, forget even the modest rally that took place in the Far East this morning, as I write WTI is trading at $48.72 and Brent at $51.41. Not only has WTI taken out the new big figure but Brent probably will anytime soon, indeed puts for June have traded in the $20-30 range on some markets.”
“The Saudis have announced their pricing for February which as usual ties in with the model, lower for Europe and higher for Asia whilst for the USA apart from some increase on heavy crude all the rest of the prices are down.”
“There is simply nothing at the moment that the bulls can hang their hat on, nor will there be quite yet, looking at surveys gives a little hope, the Baker Hughes rig count fell another 29 rigs last week to 1,811, still interestingly above this time last year but 113 down on the month.”
“Canada is more telling, down 48 at 208 and is well below this time last year, their market is fragile I suspect. The weekly retail gasoline prices should be feeding through to the economy by now, at $2.21 a gallon is down another 8.5c on the week, $1.18 on the year, do the math as they say, 50bn miles a month times that saving…”
“We are however getting closer to one or two longer term support levels so if you are looking for a straw to cling on to you need WTI to defend $45.”