Salient to Investors:
Brent’s 14-day relative strength index at 17.4 today – readings of 30 or less suggest prices have tumbled too quickly.
The August Brent contract traded at a 33-cent discount to September, the fifth consecutive day that the front-month contract has been cheaper than the second month, which typically signals an excess of supply relative to demand in the short-term.
Hannes Loacker at Raiffeisen Bank International expects a rebound as marginal cost projects are not economically viable below $90 per barrel. meaning cut in capital expenditure if prices fall further.