Crude oil benchmarks broke out above key resistance levels, with prices rallying at the fastest rate of 2016. Brent crude topped a price of $41.04 whereas West Texas Intermediate peaked at $38.09. The summation of the National People’s Congress in China over the past weekend has seen policymakers adjust their expectations on future energy consumption, with the Congress announcing plans to cap its energy use by 2020. This however could prove bearish, especially in a market that remains heavily oversupplied. Despite production reductions and demand slightly rising alongside the latest report from Baker Hughes citing the oil rig count at the lowest since 2009, no planned output cuts across major global producers mean that the decline in oil prices might not yet be over. Even though some are calling the latest lows the bottom, prices could once again test these multi-year lows.
China's Trade Surplus Dropped 50% in February
Daily Analysis - 08/03/2016