Technical & Fundamental Oil Reports Specialists

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Prepare the lifeboats

Published Monday, May 19th, 2014

Another fascinating week saw both the S&P and Dow hit record highs which were followed by a sell-off on Thursday and relative calm on Friday. Momentum and growth stocks were out of favour in a rotation towards defensives and safe haven bonds. Values are stretched and in the face of mixed data confidence flowed and then ebbed. Wherever you look there are issues inconsistent with such a strong stock market. Bulls will be relieved that Thursday’s sell-off was not followed through on Friday and bears will be more impatient than ever.

Crude oil prices had a weekly gain of over $2 bbl with four up days. Hopes of a breakthrough in Libyan production volumes were dashed and over the weekend its parliament was attacked by anti-Islamists forces.  On the other hand, the chances of a supply disruption stemming from events in Ukraine eased as both sides appear to be involved in a serious attempt to reach a resolution on gas prices and debts. Iranian nuclear negotiations made no progress and the EIA/IEA/OPEC monthly reports forecast an additional 900,000 bbl call on OPEC crude in the second half of the year, the impact of which depends on progress made in resolving the myriad of above ground production issues.

to read the rest of the report, please click here 

Posted by David Hufton