- MarketPulse - https://www.marketpulse.com -

Brent Rises From Nine-Month Low on Speculation Losses Excessive

Brent crude rose from a nine-month low and West Texas Intermediate advanced for the second time in six days, on speculation that losses were exaggerated.

The European benchmark climbed as much as 1.6 percent, reversing an earlier loss of 1 percent. WTI also added as much as 1.6 percent. Brent’s 14-day relative strength index was at 28.1, a sign prices may have fallen too far. European shares rose after the biggest four-day selloff since July as Italian and Spanish bonds rallied. Brent may slip to a range of $90 to $100, according to Bank of America Corp.

“We do not believe that the timing is there just yet for Brent prices to drop sustainably below $100,” said Torbjoern Kjus, a senior oil analyst at DNB ASA in Oslo.

Brent for June settlement on the London-based ICE Futures Europe exchange increased as much as $1.58 to $99.27 a barrel, and traded for $98.87 at 12:59 p.m. local time. Brent settled at $97.69 yesterday, the lowest close since July 2, after dropping below $100 a barrel this week for the first time in more than eight months. The volume of all futures traded today was 39 percent higher than the 100-day average.

WTI for May delivery was at $87.87 a barrel, up $1.19, in electronic trading on the New York Mercantile Exchange after falling earlier as much as $1.07 to $85.61. It slid 2.3 percent to $86.68 yesterday, the lowest closing price since Dec. 13. The volume of all futures traded was 63 percent larger than the 100- day average.

Bloomberg [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell [6]

Vice-President of Market Analysis at MarketPulse [7]
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

Latest posts by Dean Popplewell (see all [6])