SaxoTV

Brent: Is this a false rally?

738 views
February 16, 2015 brent, brent crude, brent geo-political, brent oil, brent price, brent spread, brent wti, brent wti spread, commodities, commodities markets, commodities supply, commoditiy, commodity, commodity investing, commodity market, commodity markets, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, commoditymarket, crude, crude oil, crude oil price, crude oil prices, crude price, crude prices, crude spread, crudeoil, geo political, geopolitical, geopolitical tensions, geopolitics, inventories, inventory, libya, libya oil, libyan oil, libyia geo-political brent, northsea oil, oil, oil and gas, oil asia, oil bounce, oil commodities, oil companies, oil company, oil consumer, oil demand, oil drop, oil futures, oil gains, oil industry, oil inventories, oil levels, oil libya, oil market, oil markets, oil news, oil outlook, oil price, oil prices, oil producers, oil production, oil range, oil refinery, oil services sector, oil spread, oil stockpiles, oil stocks, oil supplies, oil supply, oil trading, oil wealth, oilsupply, oversupply, production, saxo, saxo bank, saxo tv, saxotv, supplies, supply, support, tradingfloor.com, us, wti, wti and oil, wti brent, wti brent spread, wti crude, wti crude oil, wti price, wti supply, wti vs brent
Brent continues its rally this Monday after moving above USD 60 last week. Saxo's Ole Hansen says it's being driven by signs that the oversupply glut in the North Sea has lifted a little. He also points out that the situation in Libya is continuing to deteriorate which is adding some support to Brent.

But it's a different story for WTI where in the US supply continues to rise even though the oil rig count has fallen around 30% in three months. Production levels are at their highest since 1982. Hansen says more than three billion dollars have been invested in the energy sector this year already.

Hansen says up towards USD 63.50 will see resistance support in Brent and that if there is a move below USD 59 "we could be talking about a false rally".