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And here my target is reached! Brent oil down 5% to $49.55 and right on support that looks tenuous at best:
On the longer term monthly chart the supports are gone and we appear to be targeting a $40 long term support zone:
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That ought to be enough to really ratchet up pressure on US shale for more shut-ins.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.