The military strikes so far in Iraq and Syria isn’t seeing a premium added to oil prices. They are targeted and not widespread so the risks to oil production is low. As I type, Nov Brent futures have fallen to 95.85 and below the 14 April low last year at 96.74
Brent crude daily 24 09 2014
The June 2012 lows is around $7.50 away at 88.48 and were hearing increased talk of OPEC nations looking to cut back on production to halt the falls in prices. Anywhere south of $100 and the producers find their margins in a vice. At the moment we’re still in the grip of under demand and over supply and that sentiment is not going to change anytime soon.
This is not a market to practice your knife catching skills so selling rallies against strong tech levels is the way forward, but keep an ear out for louder calls on production cuts from OPEC members.
