WTI crude retesting the $50 level
Tesla ripping higher and oil sinking lower is a doomsday scenario for fossil fuels. WTI hasn't responded to the past two days of risk-on trading as hopes for a lifeline from OPEC begin to fizzle.
As I wrote earlier, the talk of 500K-1000K bpd of extra cuts from OPEC+ appears to be optimistic as the technical committee today was really only mulling a 200K-400K cut. That news was re-emphasized after the meeting broke up for the day and oil began to fade and is now at $50.09, which is a couple cents lower on the day and it briefly fell through $50.
It's tough to square the swings in oil with everything in the rest of the market but it's certainly the outlier. We had been getting mixed signals last week from stocks and bonds but today is a pure 'risk on' day and oil can't stage any kind of dead-cat bounce.
That's especially worrisome because $51/$50 is a major support zone.
