Instrument: OILs
Technical Analysis
Bullish Preference:
A Buy position is envisaged if price trades above 69.06 with a take profit at price 69.19.
Bearish Preference:
A Sell position is envisaged if price trades below price 68.48 with a take profit at price 68.20.
Fundamentals:
No major fundamental.
Comment: Crude oil prices edged higher during the Asia-Pacific mid-day session as a cyberattack caused a major US oil pipeline to stop running. The Colonial Pipeline is the largest US refined products pipeline system and can carry more than 3 million barrels of gasoline, diesel and jet fuel between the US Gulf Coast and the New York Harbor area. A rush for replacement fuel could emerge on the East Coast and potentially drive prices higher if the incident persists.
This probably amounts to speculation that the BOE will move faster to reduce Covid-era stimulus than regional peers, where a committed dovish tilt persisted long before the pandemic. Tellingly, inflation expectations priced into UK bond markets rose alongside Sterling this week.
Analysis: SCRUM Team
