BLOG

WTI Crude futures just suddenly spiked above $62 (with no obvious news catalyst)...

Bloomberg points to today's gains (pre-spike) as being driven by investors weighing surging U.S. crude production against a warning from the International Energy Agency of an impending shortfall in global supplies.

“The market is probably less concerned about the rise in U.S. oil production because the global economy is doing quite well, so there is demand for the additional oil,” said Jens Pedersen, senior analyst at Danske Bank A/S.

“It seems like oil has found its feet following a volatile start to the year.”

But this is not the first sudden spike to run stops above $62..

“When the market falls into sideways trading in a band, you get a lot of price fluctuations that you have to turn a blind eye to,” says Gene McGillian, a market research manager at Tradition Energy in Stamford, Conn.

Perhaps of note is the 50-day moving average is at $62.61 (which would run the stops above this week's highs).

RBOB and Energy stocks are also spiking...

 

And Breakevens have picked up as oil spikes...