Brent oil was hammered again Friday night to $48.73. It had held up OK before the US rig count which was unchanged at 884 but the oil component rose two to 672:
The Brent price still sits right on post-GFC support:
It’s an ugly chart but the level is not broken until it’s broken. $40 is the target if it goes. I’ve noted previously the best support for oil right now is rising US demand but that story is about to come under pressure as well, from Bloomberg:
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“Summer is when refineries are all running hard, so actual demand for crude is as good as it gets,” Seth Kleinman, London-based head of energy strategy at Citigroup Inc., said by email.
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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.
“Summer is when refineries are all running hard, so actual demand for crude is as good as it gets,” Seth Kleinman, London-based head of energy strategy at Citigroup Inc., said by email.
