- Prospects of return to normal operations of the Kirkuk-Ceyhan Iraqi oil pipeline look even more elusive due to situation on the ground
- Raises OPEC H2 2014 crude production by 150kbpd to average of 30.9m
- Says global oil demand set to increase sharply from low of 91.4m in Q1 2014 to high of 94m in Q4
- Says OPEC supplies rose 85k in May to 29.99m with the Saudi’s offsetting decline in Libya production
Both WTI and crude are still reaching for the skies with Brent having been up over $1.50 to 114.69 and touching the Feb 2013 resistance line.
Brent crude oil daily chart 13 06 2014
I’ve started to scale in some shorts in both Brent and WTI. As is usual my timing sucks and I put on the first lot yesterday afternoon before the late jump and just added at these highs now. I feel that fear is a big reason behind the move but there is also some positive global growth sentiment in the market, which I highlighted earlier in the week, and the Iraq situation has put those longs in a much better position, and one they are likely to protect.
I’m not entirely convinced I’m going to make a profit from these trades but I’m still happy to scale in small longs up to $120 in Brent and $110 in WTI. I’m keeping the position small enough that it won’t hurt too much should I have to bail. If it really looks like kicking off then I’ll jack it all in sharpish and turn long.
