Oil Should Continue To Rally On The Strength Of China's Return

Since we published our WCTW piece on China's return to the oil market on Monday, WTI has so far rallied $4/bbl. In the article, we listed a few important signals, and one of them is playing out as expected: Brent timespreads.

Source: Barchart.com

Over the coming days, we should first observe Brent timespreads breakout of the trading range we have been in since November. And once we see confirmation of that, we know flat prices will soon follow.