You can’t even keep oil down for a day

Crude pares much of the decline

Even the down-days are impressive for oil.

WTI crude oil fell as low as $30.72 earlier today but has climbed all the way back to $33.11, down just 2.4% after falling more than 9%.

Looked at one-way, oil has rallied almost $75 in a month. Even if you exclude the events around April 20, the rally from $10 has been a spectacular one-way trade.

I’m impressed and surprised at the extent of the rebound and how quickly the market has rebalanced. With that, I’m very skeptical that it can hold given the scope of the demand destruction and all the crude on ships.

That said, this is a tough trend to fight. I’m closely watching the mid-March high of $36.25 as key resistance.

See here for global coronavirus case data