Oil has hit a 15-month high on the back of optimism over the Opec deal which needs to be sorted out by November 30. But, with a record long position building across the combined benchmarks, a disappointment could leave some exposed. Full report to come within the hour....
Squawk / 24 August 2016 at 11:08 GMT
Technical Analyst / FuturesTechs
United Kingdom
This is what I said to clients on Monday in Brent Crude (Oct '16 delivery): "“We topped out at 51.22 on Friday and have been tracking back ever since. This is no big surprise since we’d come a long way in a short space of time. A pullback to the 48s where the buyers return would be my “call” for the early part of this week”

And here was today's comment/thoughts: Yesterday we saw said pullback to “the 48s” AND we saw buyers returning. We left a vacuum that suggests support at 49.07. This morning has started on the back foot, so maybe that needs filling before we can head higher. We shall see. That would really “fit the script” nicely…

And what has happened? Well, the overnight low was 49.07, so this vacuum WAS filled to the tick, and DID find buyers.

This leads me to think that we can now head higher this afternoon. We do have Inventories of course, so be aware around 3.30pm (KU time)!

Attached is a Screen grab to show what the vacuum is all about...


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