The Brent oil price pinned its ears back last night up nearly 4% to $53.77. There was no cause other than a dovish Fed and the technical break out in prices.
The best oil analysts on the street, Goldman, reiterated their bearish call:
Oil prices have rallied sharply since last Friday (October 2), reaching their highest level since August on Wednesday, October 7, before receding to close at $47.8/bbl. While this rally has occurred alongside a broader re-risking across assets after last week’s US non-farm payrolls release, the oil move has been larger, exacerbated by still large short positioning and the break of key technical levels.
