Why Oil's Post-QE Plunge May Be Over

Tyler Durden's picture

A few days after the Fed launched QEternity we posted a roadmap for the post-QE track that Oil prices have mysteriously followed. We are now T+20 days from QEternity which corresponds to the post-QE trough based on the average of QE1 and QE2. What is fascinating about the following chart is just how closely the price of WTI crude has tracked the average path post-QE that we laid out three weeks ago. Is this the short-term lows? Who knows, but it seems that the divergence between WTI and Brent is narrowing with WTI playing catch up...

 

Post-QE performance of WTI...

 

and Brent-WTI is compressing today (lower pane) after over three days of straight line divergence...

 

Charts: Bloomberg