WTI Crude Oil (current price: 44.48)
Oil is has been very bullish in recent days, and it continued its encouraging advance yesterday, following news on declining U.S. production. The commodity is back above the $44, as U.S. output fell to a 12-month low, although Crude Inventories rose on the week yet again. Stockpiles are still close to record levels, and there is no agreement in sight on a global supply reduction, but the price action suggests improving fundamentals, despite the negative news flow.
Our assessment: Oil might need to pull back after the violent rally of the past two days, but the rally off the February lows still seems intact.
