Oil: Anticipate corrective upticks early this week - BBH

Research Team at BBH, notes that over the past month, the price of the light sweet August crude oil contract has fallen by nearly 15%. 

Key Quotes

“Brexit has raised the possibility of weaker demand (mostly as a result of weaker growth in Europe).  Although US inventories continue to be drawn upon, the rig count has begun rising.  It has increased for five of the past six weeks.  

The August contract has frayed a trendline drawn off the January, February and April lows.  It is found now near $45.50, which is about a dollar above the 38.2% retracement of the rally in the H1, which the dollar neared before the weekend. The technical indicators give little reasons to think that a bottom is at hand but anticipate corrective upticks early this week.”