Technical & Fundamental Oil Reports Specialists

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Looking over the precipice

Published Friday, August 15th, 2014

To quote the late Robin Williams “dude this does not look good”. He was describing a comment made to him by the devil as he came out of a three-day high and was about to crash into a dreadful low. A little on the hyperbole side perhaps when talking about Brent and the Eurozone, but you get the message.

Neither are looking at all good, in fact they are both very green around the gills. Brent is once again looking at the abyss below $100/bbl at a time when seasonal demand for crude oil was expected to be at its highest of the year. Yesterday it touched a low of $101.91/bbl, a level it has not traded below since early July 2013.

WTI fell to $95.26/bbl, its lowest-level since the end of January. The September/October WTI spread spiked 65cts/bbl to close at +$1.50/bbl on news that CVR Energy were back in the market in advance of the re-opening of their 115,000 bpd Coffeyville refinery. It is currently scheduled to re-open on August 27.

to read the rest of the report, please click here 

Posted by David Hufton