Reflation trades strengthen
Ongoing signals about extended low rate policy from central banks are sending bullish signals throughout capital markets and oil is no exception.
We're still waiting for the other shoe to drop from the US in terms of a response to OPEC but there's an increasingly belief that they won't release oil from the SPR. The strategic reserves are aimed at emergency situations, wars and true supply shortages; $80 oil might be a pain point for consumers coming out of the pandemic but it's not an emergency.
Technically, the rally today is testing the 61.8% retracement of yesterday's drop.
