In any escalation of political tension oil and gold are the two key commodities to watch. For oil the breakout and surge higher was largely driven by events in Iraq coupled with supply issues at Cushing, both of which combined to help power the WTI crude oil (USO, quote) contract up to the $107 per barrel price point as evidenced by last Thursday’s wide spread up candle.
Brent crude oil (BNO, quote) was steady above $108 as encouraging data from the world’s top two consumers helped raise the global demand outlook.
Oil appears to have run out out of steam once again, following the bullish rally during May, with $104 per barrel once again proving to be a major stumbling block, and as shown on the daily chart with the yellow dotted line.
Brent crude oil (BNO, quote) prices climbed as problems in Libya continued and US crude inventory data showed that the nation’s stocks fell last week.
Brent crude oil (BNO, quote) made its way above $110 on Thursday as rising tension in Ukraine raised concerns about supply interruptions.
Option Alert Service Signal New Trade Suggestion
Option Alert Service Signal New Trade Suggestion
As we begin the first full week of trading for May one has to wonder if the old saying will hold true…”Sell and Go Away In May”.
Brent crude oil (BNO, quote) looked poised to end the week with its largest weekly decline in four months.
If any further evidence were needed of the bearish sentiment towards oil, yesterday’s price action confirmed this weakness once more, as the commodity attempted to rise in early trading, before selling off sharply later in the oil trading session, with the June WTI futures contract closing at 101.28 per barrel, having hit an intra day high of $102.20 per barrel.
