Crude traded a $4 swing in less than 24 hours as it struggles to establish direction in the midst of an unresolved supply glut. Luke Rahbari of Stutland Volatility Group tells TheStreet’s Jill Malandrino the important price support has been $45, which is what he believes to be the break even in production. Just because companies are reporting rig count reductions does not mean the production spigot has been dialed back, so at the end of the day fundamentals remain the same. In fact, crude-dependent economies like Russia are increasing production in an effort to try and keep pace with revenue and balances, further exasperating the fundamentals.
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