Oil nears the February high
Global oil inventories continue to be drawn down and supply next year is going to be tight with companies unwilling to invest as they look to pay down debt.
What's impressive about the latest leg in this rally is that it has come with a strengthening US dollar and as global covid cases soar. New lockdowns haven't rattled the market at all.
The February high was $54.50 and that's the near-term line in the sand to watch. For Brent, the February high was precisely $60.00 so that will be doubly as important. It has a bit more work to do with the front month at $56.51.
