Crude is now slightly higher on the day with WTI at $58.35 and Brent at $61.29. Both are about $1 above the lows of the day.

There’s an inflationary impulse in the market today and in energy particularly. Natural gas has been climbing with the central United States getting some very cold weather. Bond yields are also climbing higher and in danger of breaking the post-virus highs.

This is the best start to a year for crude in 30 years. It’s been a very impressive run despite downward pressure from the latest wave of the virus. It’s gone in a straight line to $58 from $35 at the end of October. It’s a market that will really go into overdrive if OPEC+ stays disciplined in March. They have to be pleased with how it’s worked out so far.