Technical Analysis From Barclays: Oil Set to Fall on Spreads

Brent crude oil is likely to fall below $63 a barrel “in the next few weeks” as the spread between long term contracts widens, according to technical analysts at Barclays Capital. The discount for buying Brent contracts for delivery in December 2009 compared with December 2010 increased today to the most in more than two months. The spread, expressed as a negative number when the market is in contago, is now beneath a trend line connecting the low points during 2009. That may trigger further selling of Brent futures, analysts at the investment bank of Barclays Plc said yesterday in a report.....Complete Story