Crude is benefiting from a good jobs number, but I believe it has moved a little too far, too fast
On Friday morning, crude rose well above $95. But I don't think demand at this point supports $95 crude. Still, crude has obviously been helped by the strength of equities, which were buoyed on Friday by a better-than-expected April jobs report, as well as huge revisions of the March and February numbers.
I won't ignore the strength in the oil market today, but if we get to $96.50 to $97.00, I am looking to sell. After all, we have record supply in Cushing, even while demand for products is still lagging.
But I'm not selling forever. The market looks like it has established a range between $90 and $95, so if crude dips to the $90 area, I am a buyer.
