After the mulityear lows hit last week, oil started to rally today.
We're still lower than prior to the OPEC production announcement, but today saw ULSD up +.0512 to 2.2124 at the close, and Gas rallied up +.0534 to 1.881 at the close. WTI Crude closed up 2.99 to 69.00/bbl
Analysts are hopeful for an equilbrium price level between $70 and $75 so we're at least much more comfortably close to maintainence levels than we were on Friday. However, even at $70, shale production isnt terribly profitable, so on that side it wouldnt be the greatest benchmark. However, on the consumer level $60 sounds better than $70/bbl when you fill up your car.
(And yes, the analysts are hoping for $70 while panicking about $40. C'est la vie, right?)
So why did we go up?
The dollar weakened some, which almost always gives commodities a little bump.
Most likely though, its just a pull back from an overreaction in selling off on Friday.
Time will tell. The next few market days should be interesting to watch, especially with the inventory numbers out Wednesday.