The Week In Hindsight, 31 January 2014
The Brent and WTI Crude spread widened during Friday’s trading after both benchmarks extended their earlier rally well into this week.
Despite the ongoing turmoil in emerging markets, resilience in oil prices prevailed for the week until the European benchmark, Brent Crude, failed to break through overhead resistance at $108 per barrel for the second time and consequently fell back toward the $106.40 mark ahead of the market close.
Regardless of near term technical barriers, the 2014 outlook for oil prices remains positive at present. This is as growth expectations for developed markets over 2014 remain bullish, while output figures continue to surprise to the upside supported by higher confidence levels among businesses, consumers and investors.
Such growth and confidence dynamics are supportive of higher oil prices alone, without the supply side pressures that continue to exist as a result of ongoing conflicts across various corners of the globe.
In summary, we currently see strong support for both benchmarks at the January lows, while the near term direction of prices is expected to favour the upside. For these reasons, our Q1 outlook for oil prices remains in place and unchanged.
Brent Crude and WTI Overlay
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.