Weekend News 08Dec

USD-WTI negative correlation trend continues and
has reached near fully negative correlation.

Brent-WTI spread closed lower this week at/near $21.22
below key near term resistance at $22.25.

This week’s auction began challenging the Nov high, 89.70s,
clearing the stops above that area, and encountering a sellside
rejection of that area. With the longer term sellside shutting off the
upside auction at the high, the market began price discovery lower, selling off
into Nov’s key demand cluster, 84.50s-86.50s.

The market currently exhibits a double distribution structure, 85.50s-87.00s
& 87.50s-90.20s. Although sellside resumed control of the auction this week,
probability favors a filling in (development) of this structure
in the near term before a potential challenge of key Nov low. 

Graphics

Central Banks

  • ECB Refrains From Further Rate Cuts, BOE Holds Steady. (Bloomberg)
  • Europe’s Banks Hopeful Key Meetings Will Disperse Regulatory Fog. (Chicago Tribune)

Geo-Politics

  • Iran Oil Export Delays Worsening Under Sanctions. (Bloomberg)
  • UK Claims Evidence Assad May Use Chemical Weapons. (RT)

Supply/Demand & Markets 

  • Brent Favored Over WTI in EIA Outlook For First Time. (Bloomberg)
  • Australia Q3 Petroleum Output Rises To Record 143mil BOE. (Platts)
  • Impact Of Asia On Changing Global Energy Map. (IEA)