8 Jul 2014
Oil markets continue to retreat on sustained oil flows from Iraq and Libya
FXStreet (Łódź) - Independent Analyst Malcolm Graham-Wood observes that due to the fact that Iraq, where the recent military conflict has faded, continues producing and exporting oil as usual while Libya is expected to increase the flow of its oil, oil markets continue to retreat.
Key quotes
"After the holiday weekend stateside spot prices broke down and Brent for example took out the support levels at $111 and $110.50 closing near the lows."
"As you know my main worry on the downside is actually not just technical but also that the market is heaving with punters who are long and wrong and for whom this market is not their normal habitat."
"When that happens the usual pattern of behaviour is more likely to be a cutting of losses rather than to double the bet, I look forward to seeing the stats about random betting on the oil price as it comes through, Brent is now over $5 off the recent peak."
"Watch out too for the Natural Gas price which has belatedly started to head towards $4, topping up inventories after the cold winter has held it firmer than many expected but the next month or two will be quite interesting."
Key quotes
"After the holiday weekend stateside spot prices broke down and Brent for example took out the support levels at $111 and $110.50 closing near the lows."
"As you know my main worry on the downside is actually not just technical but also that the market is heaving with punters who are long and wrong and for whom this market is not their normal habitat."
"When that happens the usual pattern of behaviour is more likely to be a cutting of losses rather than to double the bet, I look forward to seeing the stats about random betting on the oil price as it comes through, Brent is now over $5 off the recent peak."
"Watch out too for the Natural Gas price which has belatedly started to head towards $4, topping up inventories after the cold winter has held it firmer than many expected but the next month or two will be quite interesting."