Despite heightened geopolitical tensions in the Middle East, oil prices remained unchanged yesterday. Following a poor EIA inventories report on Thursday and news that Saudi is going to boost crude pipeline capacity, earlier gains from central bank language were offset. Monetary stimulus, however, could help the oil in the medium term. This is provided industrial demand remains of course at par levels.
US Oil Rangebound But Close to Breaking
Demand for oil saw a slide at the 57.66 high on early Thursday, where prices reversed course and headed towards to the bottom of the tight 57.66-56.05 range. Given the current state of economies and rejection by the 50% Stochastic level, should the descending channel keep prices under pressure oil could soon reach the 54.83 level.
