Oil Price - Dec 26

[dan_s]

Oil prices rebounded on the day after Christmas. IMO the rebound is acknowledgement that the selloff on Christmas Eve was way overdone. Global oil inventories are about where they should be for this time of year. There is nothing even close to a "glut" in the physical market.

Bloomberg Report: https://www.bloombergquint.com/markets/ ... gs.HPY=Zqw

Russian Energy Minister Alexander Novak on Wednesday said the market will be more stable in the first half of 2019 and suggested cooperation among OPEC and its allies in supporting the market. “Cooler heads are prevailing here,” said Phil Flynn, senior market analyst at Price Futures Group. "Some of the selling was overdone.” The chance of another meeting by OPEC and its allies is “sending a signal to the market that they will do whatever it takes.”

Most encouraging to me is that today's move higher was on double the trading volume as was the move down on Monday.

One day does not make a rally, but this does show that just maybe the Bears may have overplayed their hand. IMO WTI needs to build a base of support above $50/bbl, then we need to see real evidence that the OPEC+ cuts are happening. It takes "Baby Steps" to rebuild investor confidence in the sector. There is a lot of money waiting to rotate into the grossly oversold sector. If OPEC+ does their job the "Right Price" for WTI is $65/bbl.