Oil is up this morning because Goldman Sachs announced that the oil glut is over. Don’t misunderstand. This means that Goldman is asking its
muppets clients to jump to the obvious conclusion and buy the energy sector. Naturally this implies that Goldman wants to sell the energy sector. Therefore, the Goldman announcement means that it believes that the energy rally is either over, or on its last legs. Given that Cushing is now very close to “operationally full,” this seems to be a reasonable assessment.
In other news, the weekend economic announcements from China and Japan can only be described as extremely weak. So the markets are strong because …drum roll… More stimulus!