WTI Crude is now up 43% from its mid-March lows (at $42), topping $60 for the first time since early December. This is a 25% retracement of the June to March drop. Despite near-record US production (rose last week WoW), record Saudi production, slowing global economies, and expectations that higher prices will bring a flood of new supply as cash-starved frackers start pumping again; it appears the squeeze combined with Middle East tensions is driving the resurgence (for now).
With yesterday's machine-plunge long forgotten - another machine-surge run-stop guaranteed tagging $60 stops...
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Pushing 5-month highs and a 25% retracement of the drop...
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With speculation rife over how long Saudi Arabia is content to see oil prices slump (as we noted the nation's record reserves plunge) [7], the country's oil minister told CNBC that only Allah knows where prices are heading.
Influential Saudi Oil Minister, Ali Al-Naimi, told CNBC Tuesday that "no one can set the price of oil - it's up to Allah." The remark comes amid widespread speculation over how long Saudi Arabia will maintain its decision not to cut production - a move that could support prices.
Charts: Bloomberg
