The run in oil around the turn of the year has been impressive and speaks to structural undersupply rather than the modest surplus that OPEC has forecast.
We're awaiting the EIA STEO today, which will be the first forecasts of 2023 US production. That's generally not a market mover but there's not much out there to explain the rally in crude today.
WTI is up $2.50 to $80.74, which is the highest since November 16.
What's interesting is that oil companies so far this year has been outperforming the rise in oil prices, suggesting that capital is shifting into oil. The value there is impressive.
As for FX, USD/CAD is testing 1.2600 after a failed test of 1.2700 yesterday.
