Brent falling towards the lows seen on Tuesday

Yesterday morning Brent crude for March delivery caught a bid and that saw it rise steeply from a low around $78.80, close to the $80 handle. In the event it topped out around $79.90 and fell back underneath $79 again. Another rebound above $79.50 then gave way to a further relapse into the NYMEX settlement. Brent later settled $0.29 lower on that exchange, at exactly $79.00. The price action so far today has seen it fall towards the low seen on Tuesday, at $78.46. Brent has dropped to around $78.60 just now and clearly there is a risk of a break below $78.46 from here on delivering fresh downside. We shall shortly see if that unfolds. In terms of the overall price dynamic, leaving aside rebounds, you can see that very little has changed in terms of what has driven the price lower to start with- Drill baby Drill. Brent is right now at $78.64