If we get the drawdown in (u.s.) inventory that most people are looking for, that is going to get the market a lot tighter.
The market was still nervous.
The oil market is fixated on macro-economic issues and not necessarily current supply or demand.
With rig counts lower, we are going to test $50, but I suspect we'll snap back shortly.
The expectation that there's going to be a drawdown in crude stocks this week is keeping the market very tight.
People are worried crude production will come roaring back at these prices.
It's tweet by tweet.
The overall economic feelings (in the u.s.) are pretty good and that should see improved demand going forward.
The pressure is enormous on these countries to cut.
And with the opec production cuts, you're running out of reasons to be short.
That's why we are seeing this big rebound in prices.
Crude was already lower on concerns about the global economy and the rig count added to the negativity.
People in new york city couldn't find their car, so this was probably a one-off.
The question is can they convince the market that they can keep their oil fields safe.
So far, it doesn't look like there will be a military response.
