The Stopping Point developed midweek in the form of a Selling Tail, 94.85s-94.60s, indicating the capping of the market by the longer term sellside at the prior key supply cluster.
The market balanced, 93.50s-94.60s, before breaking out lower and beginning a new directional phase as long liquidation occurred. The market sold off toward the Weekly 2nd Std Dev Low, 91.03s, continuing lower into the Mar cluster, 90.40s-91.30s, achieving the Weekly Stopping Point at/near 90.25s, balancing 90.25s-91.80s into the week's close.
Next week's response at 90.25s will be of focus. IF 90.25s hold as support, price discovery potential to 92.70s/93.40s. IF 90.25s fail as support, price discovery potential to 89.70s/87s.
Graphics
- Brent-WTI Spread, 52wk Low. (Bespoke)
- The Week Ahead. (Markit)
- Japanese Yen, 1985-Present. (Reuters/C. Trevethan)
Central Banks
- S. Korea Central Bank Resists Calls For Rate Cuts. (FT Beyond BRICs)
- Australian PM Gillard Says Room For Rate Cuts, Acknowledges Strong Aussie New Normal. (Bloomberg)
Geopolitics
- China-Russia & Oil Agreements. (Platts)
Supply/Demand & Markets
- IEA Cuts Demand Outlook On Europe. (Bloomberg)
- Oilfield Of The Future: 2 Miles Below Sea. (Bloomberg)
- OPEC Cuts Oil Demand Outlook. (Bloomberg)