Oil stages an impressive rally
The tail-chasing noise was there for all to see overnight, reaching eardrum splitting decibels. The robust US Manufacturing PMI triggered a squeeze of recent short positions. Brent crude rose 3.67% to USD39.25 a barrel overnight, all the more impressive after probing USD36.00 a barrel earlier in the session. WTI rose 3.80% to USD37.10 a barrel, having tested USD34.00 a barrel earlier in the session.
From a technical perspective, both contracts traced out bullish outside reversal days, making new lows before tracing out a higher close than the day before. WTI is testing its 200-DMA at USD37.00 a barrel, with Brent’s 200-DMA resting at USD40.40 a barrel.
The sentiment was assisted by stories circulating that Russian producers are reconsidering the scale of production increases scheduled for January. Although ignoring the fact that the government makes those decisions has certainly helped the oil rally along.In Asia, oil has […]
November 3, 2020 Published by StockMan