Crude oil trading has been fairly volatile in the past few days. Crude rose sharply last Thursday following the Saudi king's visit to Russia. Prices then fell sharply the next day, following news that Saudi Arabia and Russia are walking back from discussions to extend OPEC's supply cuts. Hurricane Nate also weakened to a tropical depression, after initially making landfall as a category 1 hurricane. As we recently wrote in our bull case for crude, rising inflation expectations may power the commodity to new highs in the near future. Our medium-term outlook on crude remains neutral, as prices remain range-bound.
This morning, both Brent crude and WTI are rebounding. WTI is still below $50, and is currently trading just below $49.70. Brent crude is currently above $56.00, having weakened down to $55.50 last Friday. After entering overbought conditions earlier this week, crude oil is now trading within a normal range.