Typically speaking, this is a time of year that’s very bullish. But at the same time, we keep building inventory, so it is not necessarily a clear cut signal. We have geopolitical tensions of course that could come into the picture as well.
The Brent market has also turned around to show signs of life. And as we look at this chart from a longer term standpoint, we did bounce from right around the 50% Fibonacci retracement level.
The $84.50 level above should be a significant resistance barrier, and if we can get about there, then we can really take off. It’s the same factors that we see over in the WTI grade that are driving the Brent market. I think you just have a lot of value hunting. And ultimately this is a market that I think will continue to be noisy. But I also think eventually we will find a reason to break out either demand over the summer or maybe something geopolitically related.
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