Oil: Sceptical about the bullish story - BBH

Research Team at BBH, suggests that they are sceptical about the bullish oil story predicated on an OPEC agreement to curb output and a dramatic decline in the US oil stocks. 

Key Quotes

“There remains such a fundamental disagreement between Saudi Arabia and Iran that they don't even agree on the current output.  The details of last month's agreement will not be decided until next month.  The drawdown in US inventories may be related to a pending storm.

Nevertheless, the November contract closed above $50 a barrel for the first time since early July.  The rally over the past week or so has climbed the five-day moving average, which finished the week near $49.60.  That may offer nearby support, and below there is $48.  On the upside, $52 is the next target for the bulls.”