Oil could hit $70, but beware of Friday trade patterns. Gaurav Sharma, Oil market Analyst at Sharecast notes that there has been a lot of volatility and excitement in the past week, and that amazingly it has been unconnected to the Greek situation. China not Greece driving Oil prices. Sharma comments that maybe five years ago it would have been, but that story is long priced in. He feels that the big driver for oil has been the market correction underway in China. He believes that China is showing practically zero signs of growing at 7% and he is using commodity imports as his main indicator in this assessment. Nevertheless, Chinese growth is still there, but it is tepid. Looking to Oil, he believes that the optimal price is $58-60 a barrel, noting that the OPEC basket is currently sat in between Brent and WTI which is an indicator of fair value. That Friday (oil) feeling. Thinking of if $60 a barrel is too optimistic, Sharma commented that actually $75 is too optimistic and that while Oil might hit $70, he doesn’t see it staying there for long. He advises that traders and investors should keep an eye on Oils performance on Fridays, as he has noted some interesting behavioural traits.
