Oil prices rally continues - BBH

Analysts at BBH suggest that the recent rise in US 10-year yields may have been spurred by the continuing rally in oil prices.  

Key Quotes

“The combination of OPEC restraint, the dip in the US rig count, the decline in US inventories, unusually cold weather in large parts of the US, and geopolitical developments helped lift crude prices to three-year highs.”

“After the markets closed yesterday, API reported an 11.2 mln barrel drop in US oil inventories, which was almost three times more than anticipated.  It is the largest drop for this time of year in nearly two decades and stocks in Cushing fell below 50 mln barrels for the first time in three years.  The EIA data due out today is regarded as more authoritative.   The failure to confirm the API figures could spur some profit-taking.”