The Week In Hindsight 14 February 2014
Both Brent and WTI crude seemed determined to break for higher levels this week after rebounding off early peaks from the week before. Robust oil prices remain supported by growth expectations for the west while unrest elsewhere in the world continues to contribute toward to supply and demand dynamics. This resilience comes despite a US Energy Administration Agency report released during the week which indicated expectations for global supply to outstrip demand growth over the year going forward.
The next level of significance ahead for WTI crude can be found slightly above the $101 per barrel region while the next level up for Brent remains just northward of the $110 per barrel mark. These levels are likely to place both benchmarks firmly into overbought territory which could see a correction ensue in the near term however, anticipations of strong demand over H1 2014 are likely to maintain the upward trend in Oil for the foreseeable future.
Brent Crude / WTI Crude