Oil technicals warn of downside risk - BBH

Analysts at Brown Brotehrs Harriman offered recap of the action in the oil.

Key Quotes:

"The February light sweet crude oil futures contract snapped a four-week advance with a 2.5% drop, despite reports suggesting Saudi Arabia has cut more output than it promised.   Price snapped back quickly from a push below $51 a barrel, and the lowest level since the end of November.  The technical indicators warn of near-term downside risk, but as it approaches the bottom of the range, look for buying to reemerge.

A move above $53.50 improves the technical tone."