“At 10:33 p.m. EDT Sunday, U.S. crude was up 31 cents at $57.58, while London’s Brent crude struck an all-time peak at $56.80 a barrel, marking a gain of 29 cents. “I would have thought prices would struggle to go much higher. The market fundamentals suggest lower prices,” said Mark Pervan, an analyst with Daiwa Securities in Melbourne. “I think they will struggle to get over $60 in the next couple of weeks — that is a big psychological barrier.”
Isn’t this always the case? An incorrect fundamental view is rationalized away after the “bad call”. It is also a great example of the disconnect between fundamentals and price.