Indicators of life from oil however it’s a protracted highway again from seven weeks of promoting

Sentiment in oil would possibly lastly be so washed out that it is secure to wade in.

The US introduced one other 3 million barrels of purchases to refill the SPR in the present day and that is a modest optimistic catalyst because the White Home is ready to refill it at costs under what they paid. I would argue that is simply extra stock down the road to maintain oil under $100 however the oil bulls will take what they will get.

Within the newest rout in oil, I ponder what number of pair trades had been concerned with oil and bonds. Crude makes a terrific inflation hedge and with oil costs declining and bonds rallying, you marvel what number of of these trades are being unwound.

Technically, there is not a lot to like right here however there may be some help within the $66-68 vary, which equates to a optimistic risk-reward in case you assume OPEC+ can tighten the market in Q1 and US producers lastly decelerate. I do not hate that commerce however I might somewhat be late than early.