Oil has my Attention Here — an Update

On March 1st, I wrote A Confluence of Oil Trends: Setting Up for Another Rally which I recommend you read first if you have not already. At the time, Brent oil was trading at ~$82/bbl. After rallying to $92 by early April, oil has roundtripped back to the $82 level. Since then a few points have caught my attention:

• The physical market has softened since April.

• Positioning is doing something really interesting.

• Narratives are converging.

Let’s go to the charts…