The Brent oil continued its largely technical surge last night, up another 2% to $63.77. The major cause continues to be a loosening in fears that the US glut will overflow. US refining is now bouncing strongly:
The price was also helped again by a falling US dollar.
However, I do not expect this to last. Saudi Arabia is ramping up again:
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.