Crude looks to aim softer in the near term - RBS

Research Team at RBS, notes that the biggest asset move in the major complexes was in crude, which fell almost 3% on higher than expected inventory data.

Key Quotes

“Oil is back in a seemingly frequent pattern of “up on talk of OPEC production cuts/freeze” then back down on disappointment on that fact, and the inevitable reminder that supplies are still healthy in the energy complex. Technically, crude looks to us to aim softer in the near term. If so, with stocks also looking a bit extended, we could see a bit of a correction in the next few days to a week, although such technicals can easily be derailed by Friday’s Yellen speech (especially for equities). So as with rates, we wait for Yellen on that as well.”