With bullets and bombs flying in Ukraine in various incidents and protestors closing down two oil fields in Libya, there’s all the ingredients in place to see oil make some gains. Instead Brent is down nearly a buck and a half. The oil field shutdown isn’t such a big deal as it accounts for only 39k bpd says the National Oil corp.
July futures have been down to 106.42 after finding resistance at the previous 108.32 area and the 55 and 100 dma’s
Brent crude daily chart 05 05 2014
The likelihood is that the Chinese manufacturing PMI has given oil a knock back and we’re at the bottom of the range and June 2012 support. My shorts from 110.10 TP’d while I was away at 108.50 and I’m going to be a willing buyer anywhere down towards $100, but may start scaling in from $105 should we see it.
