http://af.reuters.com/article/inves...24?pageNumber=2&virtualBrandChannel=0&sp=true 1/ ICE Brent's premium to U.S. benchmark West Texas Intermediate crude reached $8.59 intraday on Friday, its highest since February 2009, on tight North Sea crude supplies and strong emerging market demand. Royal Dutch Shell said on Friday four North Sea Brent oil and gas platforms, which shut down on Saturday, are expected to remain closed for several weeks. 2/ U.S. crude demand is set to fall with the onset of a peak refinery maintenance season, Peter Beutel, president of U.S. trading advisory firm Cameron Hanover, said in a note late Friday. "With the information that refineries had cut utilisation by 3.4 percent, the DOE (Department of Energy) signalled that turnarounds have begun in earnest," he said. 3/ Astmax's Emori said fundamentals in the oil market are still much weaker than other commodities such as grains and metals. "We don't see any tightness in the oil market at the moment," he said, adding that the price gap between front and back-month contracts may widen further. However, traders will, at some stage, have to take profits on the wide spread between Brent and WTI, Emori said, adding that investors should remain cautious.
If price breaks back down through the 88.23 low, I'd keep 88 a soft target. There's a lot of airspace below and a daily trend line below 87.
I was wondering how to play this since my bias has been towards looking for 87 but as time goes by that daily tl gets higher and higher as does that 50 day ma which i have at 88.079 on the QM. The more I think about it the money play would be the place a sell stop below that 50 day (add to the winner) and cover everything at the daily TL which today would around 87.15. Thanks for making think clearly
Especially if the dollar tests the overnight lows. The DXh1 touch 78 and spiked so I'm not sure if it will happen. I actually just got long the DX as I'm typing this.