, Columnist
The Reason Behind Oil's Sudden Jump
Rally could falter if over-supply doesn't ease by May
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Oil futures traders have shifted attention to falling production from their earlier preoccupation with rising inventories. That switch may have helped put a floor under oil prices, as the outlook for non-OPEC supply deteriorates.
Throughout December, the weekly publication of U.S. crude inventory data by the U.S. Department of Energy produced a predictable price response. When the stockpile rose, the oil price fell. When the inventory dropped, it jumped.