On most days a 98-cent rally in oil would be cause for celebration for oil bulls but it won't feel like that today.
That's because oil had earlier risen more than $2. It finished at $79.13 after trading as high as $80.67.
A tighter US inventory report with signs of stronger gasoline and distillate demand sent it to the highs of the day but the sellers quickly pounced.
That's the third trip above $80 already this month but it's failed to close above the key level each time. Some of that is longer term OPEC worries and some might reflect hedging flows or concerns about a slowing global economy.
At some point, the oil bulls will need to show their mettle or risk another slump. For now though, I'd still score the 98-cent rally as a victory.
