Weekend News 01Dec

USD-WTI negative correlation trend continues.
Positive correlation extreme in USD-WTI coincided
with intermediate low/ recent balance from $84-87s.

This week’s auction began with balance in the near term
supply cluster referenced last week (87.50s-88.70s). The market sold off
 below that cluster toward the monthly POC (85s) in a liquidating break
of weak longs. Following this inventory adjustment, the market rallied into week’s end
closing at/near the high, 89s. 
Structurally, there are now
buying tails in both monthly & weekly profiles.

Probability favors a challenge of key supply at/near 89.70s.
Should sellside fail, price discovery likely into major overhead
supply cluster 91-93s. Alternatively, should
buyside fail at/near 89.70s, price discovery likely
back into key demand cluster, 84-87s. 

Graphics

Central Banks

  • ECB Outlines Wide Supervisory Role, At Odds With Germany. (Reuters)
  • Fed’s Dudley Sees Weighs More QE Amidst Unacceptable Joblessness. (Bloomberg)
  • Quarterly Report On Balance Sheet. (Federal Reserve)

Geo-Politics

  • Fed’s Tarullo Says Fed To Demand More Capital At Foreign Bank Units. (Bloomberg)
  • US Ponders Intervention Acceleration In Syria. (RT)
  • Nationwide Internet Blackout In Syria. (RT)
  • US Energy Policy. (Bloomberg Government)
  • US Senate Passes New Iran Sanctions Targeting Barter Deals. (Platts)

Supply/Demand & Markets

  • September 2012 Import Highlights. (EIA)
  • Impact Of Recent West African Force Majeure On Crude Grades. (Platts)

Midweek News 28Nov

Source: EIA (Nov 2012)

Graphics

Central Banks

  • Marc Carney To Head BOE. (Zerohedge)
  • Central Bank Of Brazil’s Efforts To Transfer Its Currency Risk… Or Not. (GoldCore)
  • Fed’s Evans Urges ZIRP Until 6.5% Jobless Level. (Bloomberg)
Geo-Politics
Supply/Demand & Market
  • API: +2mil v +300k exp. (Reuters)
  • EIA: -300k v +350k exp. (EIA)
  • South Korean Arbitrage Redraws Dated Brent Landscape. (Platts)
  • Mary Schapiro To Step Down As SEC Head 14Dec. (Bloomberg)
Slings, Arrows, Outrageous Market Fortune
  • MF Global Customers Seek Subpoenas For Corzine, Others. (Reuters)