The crazy world of oil continues
Brent crude looks to have cemented itself in the $50 mark as the bullishness from last weeks oil news keeps going. That's even with the Iranian State News Agency saying that Iran has increased their export capacity to 4mbpd, a figure they wanted to get back to once sanctions were lifted. They are not far off reaching that in production numbers as they are at roughly 3.8mbpd.
They cite the MD of the National Oil Company who wants to boost output capacity to 5.2-5.7mbpd.
And just as I'm typing, an official from Libya's NOC has just come out and said that their production has reached 500kbpd and will reach 600k by the end of Oct.
None of that has dented the oil rally and it's pushing up towards the next band of resistance around 51.00.
Brent crude daily
The 51.00/20 area has been decent resistance fairly often and it marks a test for the current rally. I don't dare say that we're possibly entering another (short-term at least) uptrend but I suspect there will be some news that causes dips between now and the Nov OPEC meeting where this wonder deal will be finalised.
Dips to the 45 area are where longs should be looking now, depending on the news. A break of 51 and the May highs around 52.70 will set us up for a test of the July/Sep/Oct 2015 highs.
