Along with equities, WTIC Oil, continues to broadly climb from the Feb'11th low of $26.05, with a net daily gain of $1.57 (4.3%) to $37.90. Near term outlook offers the 38/40 zone. Sustained price action in the 40s looks extremely unlikely, as the underlying issue of over-supply remains 100% unresolved.
The current rally is arguably no different to those periodically seen last year, with the broader trend remaining bearish.
The $26s look no more a floor than the low from last August, when many touted the $37s as the floor.
In terms of downside...
On a break <26, first target is the psy' level of $20, with secondary target zone of $16/15.
Considering overall demand, but more importantly.. supply issues, the mid teens look highly probable.
How fast the energy industry capitulates - with mid tier (listed) bankruptcies.. is difficult to say.
Tuesday has nothing of significance scheduled, and price action will likely be even more subdued than today.
Goodnight from London