The latest EIA report showed a net weekly surplus of 10.4 million barrels. For the moment, the market doesn't particularly care, with oil lower by just -1.3% in the $33s. Most indexes look prone to turning positive into the afternoon, and continue clawing toward their respective 200dmas.
The oil surplus really shouldn't come as a surprise, as supply is NOT being cut anywhere. Indeed, many recognise that there is potential for further supply coming online before end year.
Capitulation in WTIC oil is under $20.
If we are $38/40 by mid March, I'd even consider a mid term short, via USO.
notable strength, tech, QCOM, daily
Clearly headed for the gap zone.. where the 200dma is near. QCOM is just one of dozens of individual stocks I follow, ALL highly supportive of the notion of the sp'2020/40 zone.. before the next rollover.
Here in London city...
A rather fierce icy wind... with stormy showers.
time to cook
11.05am... and the indexes turn green... already.