September WTI Brent arb

In the prior 2 sessions, the arb rose to test the upper bollinger band on the September chart, and has been repelled, suggesting possible further downside action for the WTI.

In addition, negatively impacting the WTI is the momentum having turned downward.

From a physical market standpoint, the surprise build in U.S. crude supplies and the reduced refinery runs seen in the DOE stats is likely what saw the arb retreat off the highs seen yesterday.

The September arb has resistance for the WTI versus the Brent at 4.29/4.27 and then at yesterday's high at 4.09. Support below for the WTI versus the Brent lies at the 4.42 area, and better below that at the 4.58 area.

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