Quick Note on Crude Oil

Recent action in the price of crude requires some attention. Needless to say, drillers have found some relief, with both West Texas Intermediate and Brent bouncing nicely off the bottoms created in January.   As to be expected, petroleum producing countries again seem to be ratcheting up the rhetoric to support prices, in spite of IEA stating in their August report that demand growth would likely slow through the rest of 2016.  Remember, slowing growth is NOT the same as decreasing demand.

$WTIC H&S.png

$BRENT H&S.png


Both graphs seem to be forming inverted Head and Shoulder patterns, allowing for an interesting upside towards $60 in WTI and $66 in Brent.

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