The Brent oil price was hammered into the $30s last night for the first time since the GFC last night before rebounding to $40.20. There was no news, really, just the ongoing realisation that the market structure is now stuffed for prices. Reuters offers some technical analysis that suggests $30 is imminent:
U.S. oil CLc1 may drop into a range of $27.07-$28.97 per barrel over the next three months, while Brent oil LCOc1 targets $28.31-$32.24 range, based on their wave patterns and a Fibonacci projection analysis.
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.
