WTI Crude Tops $60 (5 Month Highs) After Saudi's "Leave It To Allah" Comments

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...

 

Pushing 5-month highs and a 25% retracement of the drop...

 

With speculation rife over how long Saudi Arabia is content to see oil prices slump (as we noted the nation's record reserves plunge), 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