Oil: $70 is psychologically important level – BBH

US President Trump's tweet, complaining about the "artificially" high oil price injected some volatility into pre-weekend crude trading, but WTI for June managed to close fractionally higher, explains the research team at BBH.  

Key Quotes

“The decline in US inventories and ideas that the global inventory overhang has been corrected (current levels are marginally above the five-year average, which had been OPEC's quantitative goal).  Since the start of the year, the continuation futures contract has been knocking on the 50% retracement level of the crude's decline since mid-2014.  That retracement was a little below $67 a barrel.   The recent price action has convincingly moved through this area, that the June contract briefly traded above $69.00.  The $70 is psychologically important, and the 61.8% retracement is found a little above $79 a barrel.”