Friday, 12 October 2012

Quick Technical Charts - Crude Oil

Commentary on crude oil prices has not been as prevalent lately even though gasoline prices continue to climb.  Lets take a quick look at where crude oil is at the moment.

Below is the 1 year chart for Brent crude oil.  As you can see...crude oil had a tumultuous spring and summer capped by a relatively boring winter and fall.  After averaging around $108 per barrel, all the way till Feb, it jumped quickly to almost $127 per barrel before completely reversing itself and dropping all the way to $90 per barrel.  It has since recovered and is now close to both the 50 DMA and 200 DMA of $115 per barrel.

Really there isn't much direction here from what I can see in terms of whether it'll drop or climb back up as that's driven by macro factors.  There's a slight bias to an upward trend from technicals but global macro picture still remains weak.  In any case, the oil picture looks relatively uneventful for the moment.

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