Wildly Frustrating
The common question I am getting across my feed today is, "Inventory draw was bullish, so why are oil prices down?"
Get in line. You are not the only person confused.
I think to understand better why oil prices are ignoring fundamentals today, you have to understand how the market is thinking about oil, in general, and the macro landscape.
More importantly, you have to realize that while we are in a steep deficit today, the market is forecasting builds on the horizon, which is one of the key reasons why the market is choosing to ignore the inventory draws today.
While it certainly feels like all hope is lost, I am here to tell you that the market is far too bearish on oil today, and people are ignoring some of the critical factors that could push prices higher.