August 27, 2024 at 05:48PM
Oil rallied 3.5% yesterday after Libya halted production and exports on the civil unrest in the country.
The old adage applied again: Never trust a geopolitical rally. There are times when they can work for a period — like the Russian invasion of Ukraine — but unless barrels are truly taken out of the market for an extended period, then the trade is to fade the rally.
Today, WTI is down $1.79 to $75.61 and near a session low.
Notably, CAD was a big outperformer yesterday on the oil rally but hasn’t given any of it back today.
This article was written by Adam Button at www.forexlive.com.
Oil gives back most of the Libya gain