The squeeze is on

WTI crude took off after inventory data in a quick move to $30.00 from $28.50. Comments from Nigerian and Saudi officials are getting some of the blame for the moves but I don't see anything there screaming to 'buy oil'.

Looks more like a squeeze or a round of profit taking from shorts to me. In a long-term downtrend like crude, the retracements can be wicked.

A rally up to $34 would be another 11% and it's certainly possible if crude can get above the resistance at $31.70.