As inferred last week, here & here, the focus on the response to the 95s this week was well founded as the market challenged this key structural low early in the week.
The market failed to breakdown there, creating the inventory adjustment rally phase up to the key structural high at/near 98s into midweek.
The market achieved the stopping there, balanced, ultimately selling off back through the range late in the week, closing at/near 95.80s.
Market response at 95s will be key again next week. The market condition is now of balance from 95s-98s, but IF 95s fail to hold as support, price discovery lower into Jan trade cluster, 94.30s-92.40s. IF 95s remain support, continued development in current balance, 95s-98s, would be expected.
Supply/Demand & Markets
- Planned Changes To US Crude Oil Pipeline Infrastructure Should Relieve Cushing Bottleneck. (EIA)
- US Refiners Take Advantage Of Changed US Oil Landscape. (Platts)
- How Do You Measure China’s Oil Demand? (FT Beyond BRICs)