Ok, well oil has had a decent couple days on the back of bullish inventory data and the possibility that the Saudis are redoubling efforts to balance the market.
Although US production is of course still running high, it’s worth noting that Cushing stockpiles dropped for a 9th week to 57.5 million barrels. That’s the longest stretch of declines since June 2014 and the lowest since mid-November 2015.
And so, having been given a (probably temporary) reprieve and a new lease on life, the bulls have managed to drive Brent above $50 for the first time since June 7 on Thursday:
“The Saudi plan to make a visible dent in U.S. stocks is working out for the time being,” JBC Energy said in an emailed note seen by Bloomberg. “But the market remains rightfully focused on medium-term supply aspects, where ongoing increases in U.S. rig counts and production remain a fact.”
But for the time being….