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The crude facts: Breakouts, strippers and oil

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Crude has finally had a technical break to the upside after being stuck in a range for several weeks. Saxo's Ole Hansen says it comes as other commodity prices begin to stabilise. He notes that the supply side is being affected by slowing production in the United States. 

Demand growth is also being revised up and is also looking robust in China for 2016, says Hansen. He says the recovery in emerging markets is helping equities and bonds, proving the significant impact oil prices have on the global economy.

Ole admits that US inventories should be rising by more than they currently are given the seasonal slowdown in refineries. But so far that hasn't happened and he points to production data that's not telling the full story. 

He also gives his price prediction of where both brent and WTI will be over the next few months.