Brent oil is off and running again:
There’s no fundamental reason for it. Libyan oil is back online and growing. Brazil is booming. To me this is technical. Hedge funds have been blown out of the long trade and the sell side is still hysterically bullish so folks are now buying the dip. Morgan Stanley is typical:
The lack of US crude inventory draws has been the dominant concern during recent investor meetings. However, examining less visible – but still reported – inventories shows ~72 mln bbl of total oil draws globally since end-Jan. We expect this to gain momentum and see price risks skewed positively.
