WTI Spikes Over $57 For The First Time Since July 2015

Tyler Durden's picture

Having legged higher at the opens of Asia, Europe, and US markets, WTI is extending gains overnight on middle-east tensions...

Brent is trading above $62 amid anti-corruption drive led by Saudi Crown Prince Mohammed bin Salman, which may consolidate his control in OPEC’s largest oil producer, and WTI has pushed above $57 as producers such as Nigeria, Saudi Arabia signal they support a potential extension of OPEC output cuts.

“We have political uncertainty, risk of political instability in this major oil producing country and also unforeseen implications for the entire region,” Commerzbank analyst Carsten Fritsch says by phone.

 

“It justifies a certain risk premium in the oil price...

 

At the moment you’d have to be brave to bet against Brent."

And everyone and their pet rabbit is record long the energy complex.

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mily's picture

So ex-lehman trader this morning was ineed the fullest of BS since lehman

asteroids's picture

Far more interesting will be what will happen to the Princes that are currently out of the country. Will the bullets fly in lets say London, or New York?

I woke up's picture

Trump's olive branch to keep Saudi using the petrodollar

Ink Pusher's picture

More hopeful speculation always pumps the hand that flogs the dead bull.

Unless we get a 'real war' out of this ,it's back to a flatline or decline by the weekend.

whatamaroon's picture

My MLP's are liking it :)

adr's picture

So the entirety of the rally from $26 to $50 was based on production cuts that never really happened and production and inventories have stayed above the Jan '16 low. Now an extension of these "cuts" supports oil going higher than $60?

Some planet the Fed has put us on. 

coast1's picture

crap...like I have money for higher gas prices....grrrr

Angry Plant's picture

Oil will be at $60 per barrel soon. If it stays at that level are goes higher is the question. Basically we have three years of massive non investment in oil production by large parts of the world. That has created a temporary but mean full shortage in crude production. The only thing keeping prices down is massive over hang of crude that is slowly being eaten away by the shortage of production.