The market is reacting today as if oil at less than $74 a barrel is a bargain.
If we are seeing China back to growth, that is another stress factor back in the oil market.
When the oil market notices that China is back, and remembers the fire that China's exploding oil demand lit under prices last year, the 'China factor' alone should be sufficient to floor near-term prices.
The storm's track at the moment takes it through a different patch of the offshore oil production facilities to Katrina,
We notice oil has been rallying at the same time as copper and gold. That we think has to do with the funds.
Other than the weather, and hurricanes, and refineries going down, and Saudi Arabia and Iran, and strong economic statistics, there really is no reason why crude oil prices should be so high. It must be speculation, don't you think?
Most of us had known days ago that the U.S. would loan oil but some people interpreted the headline as a release of oil, possibly of products. Then the market realized and started buying it back.