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Oil up $1.00 to $69.29
WTI crude fell as low as $66.67 today after the White House called for more OPEC production but after a flurry of criticism, officials walked back some of the statement, saying it was more of a long-term push.
That communication is equally bizarre given that by Q2 of next year, OPEC plans to be back pumping at full capacity.
In any case, I think this washes out better for oil in the months ahead because criticizing OPEC for not pumping more oil while you’re trying to restrain North American production is politically tone-deaf.
Beyond that, what really matters is supply and demand. If you look at global inventories, they’re undoubtedly tightening. There’s talk today of lighter Chinese refinery runs because of delta shutdowns though and that bears watching. On Chinese inventories, there is a camp that says that all the oil they scooped up last year is more of a long-term strategic reserve rather than a short-term option to draw down. That’s a big question going ahead.
Technically, I think the bulls are feeling increasingly comfortable that the $64-$76 range will hold for a time. More confidence would come on a close above $70.