Oil commentary - 24 September 2015

Morning all. A choppy day yesterday. Brent closed down $1.33 to settle $47.75 and WTi closed $44.48 down $1.88. The Brent/ WTi spread has widened to $3.27. US stats out last night which showed a draw of 1.925mn on crude but more importantly a drop in refinery utilisation of 2%. We're coming in to maintenance season as we all know so demand will wain. The crude draw meant the market rallied a 50 in about a millionth of a second and then got sold off by the people who the stats actually matter to by the time they had run their algorithms. I have to laugh though when people say they are concerned about oversupply - concerned??!! We're drowning in it! That's like being attacked by a lion in a phone box and being more worried about the phonebox than the lion. All eyes on the cracks. Good day.