Crude’s move back over $60 is purely based on techincal trading in a market with bearish fundamentals. Dan Dicker, Senior Energy Analyst at TheStreet, tells Jill Malandrino the rally could be short lived as there is not much there to support it, which is an opinion analysts share at PNB Paribas, Goldman Sachs and Barclays. Dicker says demand increases are mostly ‘phantom’ as crude is just going into stockpiles instead of being used. The ‘fracklog unwind’ is another concern Dicker has because many shale wells were idled with lower crude prices, but if the commodity reaches $65, producers are going to come back online and further exasperate the supply glut.
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