- WTI finally broke above $42 resistance level after 3 failed attempts.
- Technical analysts suggest this move could push prices to $49/bbl.
- On the fundamental side, while we argued that prices could have already priced in the draws, today's move suggest otherwise. If so, then, the market is in for a surprise.
- We currently have US crude storage falling below ~500 million bbls by the end of August.
- In addition, US oil production has disappointed to the downside. July average is around ~11.3 mb/d, but our leading indicator indicates that August may actually move lower despite more shut-in production return.
Wednesday, August 5, 2020
Seeking Alpha - Oil: The Market Is In For A Bit Of A Surprise If It Didn't Price In The Incoming Draws
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