Oil commentary [08/08/17]

News   •   Aug 08, 2017 10:15 +08

Oil remained locked into choppy range trading overnight as the market awaits the first of the crude inventory numbers of the week from the American Petroleum Institute. Both Brent and WTI spot fell some two percent as Libya announced its biggest oil field was resuming full production. Both contracts however shrugged of this new to make back almost all their losses and close virtually unchanged at 52.05 and 49.25 respectively.

Bulls can take heart from the comeback, but both Brent and WTI’s ranges continue to contract in a quiet news environment, suggesting a breakout is imminent. Assuming that nothing comes from OPEC/Non-OPEC’s technical meeting in Abu Dhabi today, oils near term fate will most likely be determined by the official U.S. Department of Energy inventory data tomorrow evening Asia time.

Brent spot is trading at 52.075 with its triple top resistance at 52.70 still untested. Some congestion below appears at 51.20 ahead of key support at 50.50, the 1st August low and the 100-day moving average.

WTI spot trades at 49.20, well below its double top at 50.30. Interestingly a triple bottom has formed over the last four sessions around 48.40 providing initial support ahead of 48.00 and then the key 47.70 level, the 100-day moving average.