The one-year oil curve fell into contango today as front-month prices continued to crumble. I think the focus on the curve structure is overdone, especially with uncertainty about China's reopening timeline, but that likely kicked off a final press towards $70.
Bidders just above $70 finally stepped in, some perhaps on hopes for an OPEC leak or Russian action on the weekend. The low was $70.06 and it has quickly rallied to $71.50.
$70 is also more than just a big round number. US officials have indicated that the want to refill the SPR around $70 and that may act as support.
