Oil Under Pressure


Today saw both the US and European benchmarks for Oil, WTI and Brent respectively, come under pressure as both trade significantly lower than their opening price. Despite strong Chinese data, which would normally be supportive of the price from Crude, WTI is trading -2.39% and Brent off -2.67%. A possible reason for this is the uncertainty surrounding the validity of the Data released this morning from the Far East .

A false breakout higher on the H1 time frame through an ichimoku cloud, gave the first signal of sellers outnumbering buying in Brent so far today. It should be noted that this breakout wasn’t confirmed by the lagging line which didn’t follow the lead and indicating line in supporting the breakout.

Comments out this morning from Iran’s Oil minister Bijan Namdar Zanganeh asked OPEC to cut output in order to push prices higher to $70-80 per barrel, failed to spark a rally and now last weeks low of $47.80 is in focus.