WTI breaks support
Oil (#WTI) has broken the rising support on the H1 chart at $59 and looks set to head a little bit lower today. Although this looks dramatic it’s worth noting the importance of the scale, as we’re really only talking about 50 cents/bbl. From a technical perspective, we’d like to see it trade down at least another dollar and a half to test the $57 support. After that, we don’t expect too much in the way of further downward pressure to follow on immediately, and believe that the most likely scenario will be a longer period of consolidation at the lower value before the twin spectres of slowing industrial demand and OPEC production add further pressure to the downside in the coming months.