Oil commentary - 20 October 2016

Morning all. Brent closed up 0.99 last night to $52.67 and WTi closed at $51.60 up 1.31. So, EIA data showed a healthy draw on crude of 5.3mn bbls and the market took it and rallied up to $53.10 at one stage before settling at a lower number. I'm still a little miffed I have to be honest, not because the eggs are nearly being cracked for my hairy omelette but because I still don't see an OPEC cut in an already over supplied market and by an amount that will still mean an oversupplied market as being bullish. Is demand increasing? Again I stil don't see much evidence of this. It is also obvious that while flat price was low enough to idle shale oil they were busy streamlining and developing technology to reduce overheads enabling them to operate when WTi is in the 40's. Clever. Look basically without demand increasing this market is like if you stuffed a chopped up Carolina Reaper Chilli in to a boiled egg - eventually you are going to notice. And you will notice. I just don't see how we will break 55 but we probably will and I will be coughing hairballs up whilst people point at me and laugh. In the meantime, home home on the rangeeeeee...50-55 range that is. Good day.