That Oil Rally Didn’t Last Long
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.
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