Oil market fundamentals don't justify this week's $10/bbl rally, says Edward Meir at MF Global. The weaker dollar has come up from its recent lows, Nigerian unrest hasn't worsened, and US energy demand continues to deteriorate.
"This week's less-than-inspiring fundamental backdrop does not seem to matter much to the energy markets, which are still intent on moving higher...(but) the frenzied buying we are seeing suggests a top may be near, as it becomes increasingly hard to find reasons to justify further gains," Meir says.
ICE July Brent +$1.56 at $134.26/bbl, and Nymex July light, sweet crude +$1.28 at $134.45/bbl. (LAN)