The International Energy Agency came out with an “explosive” report talking about “explosive” production growth as the United States will become the undisputed leader in global oil production. Take that Saudi Arabia and Russia!
As global demand is surging, global supply is falling... and then there is the dollar. The dollar index hit the lowest level since September and the Euro surged to a three-year high that may inspire risk-on buying in oil and other commodities.
WTI crude prices pulled back from a critical technical level after coming within a couple of ticks of the high hit in May of 2015. Back then oil topped before a collapse in price as three bearish factors caused oil to fall.
The big question for energy traders this week, is whether or not WTI crude can post a 60 print. We thought, of course, that we should have seen a 60 print already but most of the bullish momentum has gone to the Brent crude.