The Energy Space
Energy Price Outlook
Oil prices could trade in a mixed direction this week, with a small pullback toward $91.50 possible in WTI. Pressure may be offered by a developing bearish divergence on the stochastics oscillator in both WTI and Brent, as well as by weakness in oil demand, and Tuesday's monthly EIA report which showed 2014 supply growth outpacing demand by 0.35 mb/d. The market has performed well in the last few weeks on improvements in economic data. Housing and the Philadelphia Fed surveys are reported on Thursday and may provide the next potential for bullish enthusiasm. Other support will come from weakness in the dollar and increased appetite for risk. We'd look for a rebound in WTI after a test of $91.50 as well as a narrowing in the Brent-WTI spread. We favor holding our June WTI-Brent trade entered on Jan 4th at -$14.25 with a target at -$8.00....1408 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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