WTI settles down $5.39 to $66.42
I read a great note today from RBC arguing that the physical market is tight inventories continuing to draw down to some of the lowest levels in 6 years. On top of that, China and Indian are refining more than they're importing so they'll be back as buyers soon.
Alas, markets don't always respond to fundamentals and they can make the best analysts look like fools.
RBC said there would be great support in the physical market at $70 in part due to timespreads. Well, here we are at $66.42 after a low of $65.87.
As Greg highlighted, the 100-day moving average is holding the line so far and that will be the level to watch all week:
If that gives way, the $60 zone is certainly in play.
