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.
Stay Tuned!
