Crude bounced as oil inventory data showed a smaller buildup of oil reserves than market watchers had expected, but a build nonetheless as oversupply is the key focus in the oil market. Luke Rahbari of Tutland Volatility Group explains to TheStreet’s Jill Malandrino these data points are important for day traders more than the macro traders who hold large positions and refiners. The biggest news in crude is going to be from the OPEC meeting on November 27. Over the past weekend, Goldman Sachs slashed its 2015 oil price forecast, yet oil has moved higher since then, but a call like that takes months to play out, Rahbari said. He reminds investors the crude complex is so big and so important, and Goldman’s thesis is based on macro such as global growth and the U.S. dollar, not necessarily just production. Rahbari looks at oil levels in round dollars. Once it hits and breaks through $85, then $90 is the next key level.
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