The Recent Oil Price Rally Can’t Be Justified

After a fairytale run that saw Brent temporarily cross the magical $80/bbl mark for the first time in three years, the crude rally has taken a breather thanks to a surprise build in crude inventories. On Tuesday, the American Petroleum Institute (API) reported a build in crude oil inventories of 4.127 million barrels for the week ending September 24, contrary to analysts’ consensus of a loss of 2.33 million barrels. API had reported a draw in oil inventories of 6.108 million barrels in the previous week, well above expectations of a draw…