WTI crude extends it exuberant ramp to a 3rd day - heading for its 5th weekly gain - the longest since May, climbing above $42, reaching its highest in 3 months amid dollar weakness, falling output, and continued hope of a production freeze (at record levels with a record glut and weakening demand).
Brent is moving in parallel with WTI, testing key resistance level, according to Bloomberg technical strategist.
“The dollar has weakened quite significantly over the last few days and that has had some affect,” says ABN Amro energy economist Hans van Cleef.
“There is positive momentum at the moment -- the floor in oil price is being set higher and higher and that is boosting momentum upward... The positive sentiment is driven by April production freeze talks,” says van Cleef, noting this added to slowing U.S. production, falling rig count.
What is most worrying, however, is this means Dennis Gartman has just a $2 window until "the end of his lifetime" at the dreaded $44.