WTI Crude: Tomorrow’s Levels, Today. 09Oct

Our daily statistical study plotting both key reference levels/price action
for 08Oct and key reference levels for 09Oct.

Our Monthly/Daily profile study for 08Oct.
Result?…

As inferred yesterday, near term low was likely put in place
in yesterday’s London session on retest of 88s.
Expectation of rally potential an ADR (91.32) and
auction into key supply cluster overhead (91-93s) toward
POC at/near 91.60s.
Objective achieved. 

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Weekend News 06Oct

The Brent-WTI spread closed higher this week at/near $22.12.
This is interesting for two reasons:
 1. $20 has been a key resistance level for months,
2. The market’s clear sellside bias in WTI this week.

Yet again this week, we see aggressive selling in WTI
with a rising Brent-WTI spread.

Next week’s response to these diverging conditions
either place Brent above value or WTI below value on a
relative basis.

Was this week’s selling market specific
to WTI or a foreshadow of more
downside ahead?…

Graphics

Central Banks

  • QE3 Priced In? Comparison of QE1 v QE2 v QE3. (Zerohedge)
  • FOMC Minutes Reveal Nothing New. (Zerohedge)
  • Weekly Fund Flows: Emerging Mkt & Hard Currency Bonds Inflows. (FT Beyond BRICs)

Geo-Politics

  • As Rial Plunges, Congress Looks To Expand Iran Sanctions. (Reuters)
  • Hyperinflation: Iran’s Way Out? (Telegraph)
  • IMF: Global Recovery Will Take Six More Years. (Telegraph)

Supply/Demand & Markets