WTI is showing difficulty in trading above the $94.00/bbl price level, while Brent is doing the same near $113.00/bbl. The oil markets may continue to remain range-bound in the near-term, as influencing factors are somewhat mixed. The upside will focus on improving economic data, buying by managed money accounts, and fresh refinery issues with Motiva
It’s difficult to say that yesterday’s rally and breakout above the 50-day MA in WTI and Brent will create an environment of bullish euphoria in the near-term, because the same conditions have played themselves out several times in the last two months.
Daily Energy Report – The oil markets may trade higher again in the near-term, however, the fundamental picture still remains somewhat weak at the moment.
Oil prices may fall slightly in the near-term, as pressure is offered by technical factors and the lack of progress in fiscal cliff negotiations. Background pressure will come from next week’s OPEC meeting where quotas are expected to be left unchanged, and from the growing amount of U.S. oil production.
