Commodities | Feb 09 2012
For those that continue to follow the Brent WTI spread we suggested last week that it would head back to US15.00, it has since traded as high as US20.00 which may represent an intermediate high given the outage in Alberta and subsequent bounce in the WTI contract. Lets see how the dust settles in Alberta before making judgment as we feel continue news from Iran and Nigeria will keep Brent bid over WTI.
Chart Point
Technically, as we have seen a solid bounce of support US96.00 (WTI) we have to give the bulls chance as we can conclude that we are back in the range and suggest a move back to US100.00 then US102.50. Momentum indicators have also turned bullish which supports the move higher. We have been bearish the market whilst it traded to a low of US96US95.44 however the bounce last nights puts a new spin on the market. We are bullish with stops in at US95.70.
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