Brent oil
2010-02-01,Weekly summary 25-29.01.2010
Brent oil rebounded a little to $73.50 a barrel as coping positive sentiment on equities. S&P500 was up 0,5% and oil quotations are following equity market steps in situation of lack any other fundamental reasons. However in case increasing demand for fuels oil prices may reach $95 a barrel till end of the year according to latest Morgan Stanley forecast.
Brent oil dropped to $73.00 a barrel not only following equities but also on strength of dollar which vanished appeal of commodities. Oil fell on further China steps according to economy cooling . U.S currency strengthened to 1.4080 against euro (0.5%) what should have negative impact on oil quotations.
Brent oil fell to $72,20 a barrel as a negative reaction on growing inventories to almost 22-month top. Oil quotations dropped about 1.4% as U.S Energy Department revealed that gasoline stockpiles gained by 1.99 million to 229.4 million barrels. On the other hand , what may be surprising oil inventories fell by 3.89 million to 326,7 million barrels meaning that there is no demand at the end chain of oil consumption. Moreover, according to Energy Department data 4 weeks fuel demand decreased 2% yearly.
Brent oil quotations were changing a little stayed at $72.20 a barrel after Federal Reserve pledged to keep interest rates low and U.S President said that creation new jobs has the highest priority but with comparing attention to national debt. However, the oil market is sinking from speculations that oil prices may fell another $2 to $6 before any firm rebound.
Brent oil set the 5 week low falling to $71.30 a barrel generally on U.S dollar strength what made commodities less attractive, naturally. The green currency hasn't stopped yet and gained to 1.3880 against euro what should be reflected in lower oil prices.
Some tech. levels:
Res.: $73 - $75 - $80
Sup.: $71 - $68 - $65
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