Being an oil bull is not as lonely as it was a few months ago as the bullish fundamentals are becoming clear even to the most die-hard bears. Despite skepticism that OPEC+ could keep it together and reduce global supply, there’s now no doubt they can.
While the markets reacted to the storming of the Capitol with a quick drop and a spike in the VIX Index, the resilience of the market suggested that, despite the unrest, there is unwavering confidence in the United States.
While the surprisingly bearish American Petroleum Institute report, along with Georgia and the U.S., are still hanging in the balance, they’re keeping prices on oil flip-flopping near the $50 per barrel area.
We’re getting strong overall commodity sentiment as funds look to get long and rebalance. It appears that OPEC+ is recognizing the reality of more Covid-19 lockdowns and that perhaps it isn’t the time to be raising production just yet.