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Brent still watching the vista across the Red Sea

The price action across the oil markets has steadied and the price of both WTI and Brent crude made some progress yesterday. Brent for March delivery settled $1.47 higher on the NYMEX exchange last night, at $77.59. It has traded just above $78 earlier today, but so far it has been unable to sustain the move. Once again the price action here is all about the supply outlook versus what many seem to concur; is a demand outlook that is not so hot. Of course, if the situation in the Middle East deteriorates and supply disruption deteriorates, then oil prices will spike. However, as was the same yesterday, that has not yet happened. Looking at the chart; all the while Brent holds above $75 then the price action remains supportive in the short term and I stand by what I said here yesterday. That is the market slowly beginning to refrain from pushing this too much lower in the absence of a supply shock that is yet to materialise. Brent for March delivery is currently trading at $77.75 
 

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