Oil prices roared higher today (along with energy stocks) with WTI topping $45 for the first time since March on the heels of ongoing positivity around vaccine timelines and the Biden transition process (as well as hopes for stimulus and uber-easy money for as long as anyone can see).
“The fact that we have more certainty on what hopefully is an orderly transition is putting some wind in the sails for crude,” said Stewart Glickman, energy equity analyst at CFRA Research.
“The biggest issue ahead is how willing they’ll be to cross the aisle and enable a stimulus package to happen. That’s going to be a primary driver” for prices.
For now, all eyes are back oin inventories as the Cushing hug is rapdily filling.
Crude +3.8mm (-300k exp)
Crude stocks rose for the 3rd week in a row as distillates drew down once again...
WTI traded just below $45 ahead of the API print and dipped after the bigger than expected build...
“Demand has real potential to pick up rather quickly to the extent that these vaccines roll out,” said John Kilduff, a partner at Again Capital LLC. “If we can get a close above $45, it will be very positive, because we’ve been stuck in this range for months.”