Light sweet crude oil for January delivered gained more than 2% over the last two sessions, but closed lower for the second consecutive week, points out the research team at BBH. 

Key Quotes

“The build in US gasoline stocks warns that some of the oil surplus was shifted into the products. The recent pullback has been sufficient to drive the five-day average through the 20-day average for the first time since mid-October.  However, we would fade this cross-over and look for higher prices.  Initially, resistance is seen near $58.  A convincing move above there would likely signal a move to new highs for the year.  The current high was set on November 24 a little above $59.  The low for the year was set on June 21 near $43.40.”