Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

OIL: WTI & Brent managed to print modest gains in early dealing this week,
shaking off the uptick in active U.S. oil rigs.
- An FT report noted that Saudi Aramco's CEO believes that "the oil industry
risks a supply crunch as big energy companies focus on US shale and other
short-term efforts over the long-term mega-projects seen in years past."
- Elsewhere Iran's oil minister accused U.S. President Trump of insulting OPEC
by demanding that it increased its output to reduce oil prices, adding that his
own county's production & levels of exports had not changed as a result of the
U.S. pressure. He went on to stress that oil prices may reach $100 in the case
of Iranian supply being removed from market.
- Very overbought daily studies remain key concerns for WTI bulls and limit
follow through. Below $72.14 is now needed to hint at a move back to
$69.44-70.02 with a close below $71.40 to add weight to their case. While $72.14
supports bulls retain an advantage with focus remaining on bull channel tops.
MNI London Bureau | +44 0203-865-3809 |