Oil gives back most of the Libya gain | Forexlive

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.