Brent oil breaks resistance in both 60min and daily and breaks
MA200 in daily charts. Receives a buy signal in MACD as well. Brent
is a better indicator for macro than WTI as brent has taken over
WTI as the leading quality in the oil market. The WTI price seems
to be more dependent on domestic US factors. Also WTI breaks up but
is still far from MA200. (Breaks MA50).
Posted by lessarda on 16th of Oct 2011 at 07:52 pm
WTI is on balance higher quality (which is why it has almost
always traded at a premium to Brent), but Nigerian & Libyan
blends are very high quality within Brent -- with Libyan off the
market and strife in Nigeria with Boku Harem, there are tighter
supplies of Brent. On the flip side, refiners are closing on the
East Coast because Cushing is the central distribution point for
WTI -- plenty of supply in Cushing from Canada & NoDak, but no
easy way to get large amounts to Houston or the East Coast or
Europe, which would bring Brent & WTI back into their
traditional spread.
Brent oil breaks resistance
Posted by lebow on 16th of Oct 2011 at 02:09 pm
Brent oil breaks resistance in both 60min and daily and breaks MA200 in daily charts. Receives a buy signal in MACD as well. Brent is a better indicator for macro than WTI as brent has taken over WTI as the leading quality in the oil market. The WTI price seems to be more dependent on domestic US factors. Also WTI breaks up but is still far from MA200. (Breaks MA50).
More a supply & demand equation with no central distribution for Brent...
Posted by lessarda on 16th of Oct 2011 at 07:52 pm
WTI is on balance higher quality (which is why it has almost always traded at a premium to Brent), but Nigerian & Libyan blends are very high quality within Brent -- with Libyan off the market and strife in Nigeria with Boku Harem, there are tighter supplies of Brent. On the flip side, refiners are closing on the East Coast because Cushing is the central distribution point for WTI -- plenty of supply in Cushing from Canada & NoDak, but no easy way to get large amounts to Houston or the East Coast or Europe, which would bring Brent & WTI back into their traditional spread.
beware of seasonality for crude
Posted by 8899 on 16th of Oct 2011 at 02:15 pm
usually crude goes down about now
could coincide with the end of hurricane season
Posted by lebow on 16th of Oct 2011 at 04:09 pm
could coincide with the end of hurricane season