Oil clears the April high
WTI crude is up $1.41 to $47.61 today as the rally continues.
The latest push in oil prices came after Nigeria's oil minister reported that output has fallen to the lowest in decades. The Globe & Mail had a great read on the weekend on Nigeria had the crisis that's hitting its economy. Expect more turmoil before it stabilizes.
Over the weekend, Goldman Sachs was out with a report and now sees WTI finishing the year at $44.60 compared to $38.40 previously.
"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman said.
"The market likely shifted into deficit in May ... driven by both sustained strong demand as well as sharply declining production," analysts at Goldman Sachs wrote. They noted, however, that the higher prices will bring supply online and send the market back to surplus in 2017.
Another factor behind today's momentum was the drop in drilling rigs in the Baker Hughes report on Friday. Later today, Genscape will release its latest estimate of crude inventories at Cushing. That number tends to move the market.
The next level to watch for is the November high of $48.36.
