In case you haven’t been watching the petroleum markets, WTI (USO) has been quite turbulent. Over the last year, we have seen crude price recover all the way to around $75/bbl on global supply disruption fears and then rapidly plummet by over 40% as the market “remembered” that crude supply massively outpaces demand.
Despite the presence of strongly bearish fundamentals, WTI futures have rallied by around $6/bbl from the lows established in late December. As investors, we need to question the fundamental and technical drivers behind any given move and assess if