Yesterday the president of Turkey Tayyip Erdonag warned he might cut off the pipeline that carries oil from Northern Iraq to other parts of the world. It happens sometimes when someone wants to vote for the independence there are always those who don’t. Kurds didn’t lose courage and had their referendum. But oil bears were scared and decided to run.
Yesterday Brent ripped through two psychological areas and surged by 5% having touched July 2015 highs at $58. WTI added 4% and now holds above the $52 level.
In spite of the today’s correction we think that some positive factors will support oil’s general bullish trend.
Firstly, the markets now are almost sure about the start of rebalancing of the oil market.
Secondly, traders believe OPEC will extend cuts beyond the March 2018 deadline.
Yet, the US crude supplies data this week might make the markets be on the watch and make them lock some profits. Brent should find the support near the January, 1st lows 57.30.
WTI will unlikely make a clear break of the support area, previous 24th, May resistance, at 51.85. At least until any strong bearish trigger appears.
Yesterday Brent ripped through two psychological areas and surged by 5% having touched July 2015 highs at $58. WTI added 4% and now holds above the $52 level.
In spite of the today’s correction we think that some positive factors will support oil’s general bullish trend.
Firstly, the markets now are almost sure about the start of rebalancing of the oil market.
Secondly, traders believe OPEC will extend cuts beyond the March 2018 deadline.
Yet, the US crude supplies data this week might make the markets be on the watch and make them lock some profits. Brent should find the support near the January, 1st lows 57.30.
WTI will unlikely make a clear break of the support area, previous 24th, May resistance, at 51.85. At least until any strong bearish trigger appears.