Oil has managed to hang in there above $100 dollars a barrel -- but do the fundamentals still support this kind of strength?
It was only two months ago that oil was trading at $86 and looking like we were heading lower, says Addison Armstrong, Director Of Market Research At Tradition Energy on CNBC’s "Closing Bell".
Fundamentally nothing has changed since then and in fact the fundamentals would suggest even lower prices. There’s plenty of oil in storage, gasoline stocks are 9% above normal for this time of year and demand is falling off.
So what’s keeping oil at $100?
I’d have to say it’s the weakness in the dollar, replies the Fast Money regular. As long as the dollar is weak there’s a trade on – short dollar and long oil.
What’s your best oil trade?
Trade oil in a range between $100 - $110 with an expectation that eventually this market will move lower.