While markets are normally closed today, crude is traded electronically, rising from last week’s standstill. WTI crude rose for the eighth straight day, up 38 cents to $85.93.
Market players have been impressed by the visible decline in inventories and low petrol and diesel inventories. Despite OPEC+ production cuts, US drilling rigs are also down, indicating that production discipline is finally bearing fruit.
In the short term, Russia teased last week that the OPEC+ production deal will be extended this week. The parameters remain unknown, but the cohesion between the groups is certainly strong, so why not reveal what the pricing situation is?
Technically, the short-term indicators are overbought, but this certainly looks like a breakout from the range of the past 10 months.
This photo, published in the Forbes commentary last week, made headlines and reminded everyone how lucky we are that the shale revolution has happened.