Downside Risks Remain Despite Oil Price Rebound

The last few days have seen money rushing back into oil, with all crude benchmarks climbing furiously, including Brent showing a 14 percent week over week increase, rebounding from a short-lived dive in prices the week before. The super-contango being projected for May/Jun has vanished, with Jun/Jul structure almost flat.While this strength does have a fundamental backbone in improving supply-demand fundamentals, the rate of increase may also have something to do with global monetary quantitative easing (QE), with the Fed balance sheet at nearly…