Crude Oil (WTI) has seen 8 weeks of the bulls in control of this market. The demand for this commodity has been reflected in the number of draw-downs in stockpiles each week from the EIA (Energy Information Administration). You can see the table below: The amount of draw-downs exceeds the amount of builds in inventories,…Details
Late Friday afternoon saw the Baker Hughes rig count change by -11 or -1%, which sent oil prices soaring making new highs around $57 a barrel. We haven’t seen prices like this since all the way back in 2015. With less rigs pumping oil, basic supply & demand states that the less of something there…Details
So I’m a bit late writing this one up but better late than never. This was the same analysis as the previous correlation trade and I’d actually entered on Friday afternoon and held over the weekend.