US oil is rallying today in the largest gain since the FOMC meeting. The gains come after oil hit a three-month low earlier this week. There isn’t much fundamental justification for the rise. Today’s oil inventory numbers were bearish. There could be some arbitrage trades unwinding on news today that the Southern portion of the Keystone pipeline is nearly complete. That rearranges the supply dynamics of the US and regional spreads.
The past few squeezes higher in WTI have been selling opportunities and with the shutdown threatening growth, I expect the same today.
