Technical & Fundamental Oil Reports Specialists

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Shakedown rather than meltdown

Published Wednesday, October 22nd, 2014

Early signs are that last week’s action was more a shakedown than the beginning of a meltdown. Markets rallied yesterday despite confirmation that China’s growth rate is slowing down. It was well enough signalled not to be a shock.

The factor raising spirits yesterday was a report that the ECB is considering adding corporate bonds to its asset purchase programme in further evidence that it is serious about increasing its balance sheet by $1 trillion. QE even ‘ECB style’ is good news for asset prices despite doubts that it will do a great deal for the real economy.

Oil closed higher at $86.22/bbl (+82) for Brent and at $82.49/bbl (+58) for WTI. Chinese implied oil demand numbers are promising, although not very reliable. The Iranian nuclear talks appear to be floundering so that is one source of potential additional supply that other OPEC members can worry less about.

to read the rest of the report, please click here 

Posted by David Hufton