Malcolm Graham-Wood
Independent Analyst
Wow, that was one hell of a week whichever way you look at it. The oil price has picked up from the bottom in no mean fashion, yesterdays rise was the biggest one day rally in six years and WTI will likely be up on the week for the first time in 11. There are a number of reasons for the rally with fundamentals not really being involved that much. True, the inventory stats helped a fair bit as did the US crude production falling to 9.34m b/d day and the US GDP revision was a bit higher than expected at 3.7%.
It was worries about China that started some stories about Opec ‘reexamining’ their stance and more countries called for an emergency meeting, maybe with non-Opec participation. When WTI dipped into the 30’s even the Saudis were apparently taking the notion seriously and today it’s Venezuela calling for a meeting with Russia invited along. Those of you who watched my interview on IGTV on Wednesday or through the link in the blog yesterday will understand what I was trying to get over, no great change in fundamentals but some change in how to deal with the problem right now.
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