That Oil Rally Didn’t Last Long

Things are moving fast

Oil Refineries Just Weeks Away From Shutdowns: Morse

There was a lot of movement in the markets on Wednesday after a Fed announcement that was widely perceived as dovish. Stocks surged. The dollar fell. And oil finally caught a break, spiking hard after the news. But as you can see on the chart below, that didn’t last long. Oil has given back almost all of its gains.

Screen Shot 2015-03-19 at 8.19.57 AM

The move in oil mirrors what we’re seeing in currency markets, where the dollar has made a big comeback since its initial post-Fed-announcement drubbing. The fundamentally bearish conditions for oil—rising production and storage facilities getting filled to the brim—remain in place.

For more, read this QuickTake: Oil Prices

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