Tuesday Link-Ups: Oil prices – lower for longer?

Have Oil prices risen too fast?

• Bloomberg – Oil Price Rally Isn’t as Deep Rooted as It Looks at First Glance
• MarketWatch – Crude oil slammed 1.3% as supply-glut fears return

I track Sector ETFs on Morningstar – and the Energy Select Sector SPDR ETF – XLE (which I often trade) went from the most undervalued to the most overvalued in less than a 4 week period.

I don’t think the fundamental story merits this increase:

• The Wall Street Journal – Oil Prices Slip on China Data, Increased OPEC Output

Note: Oil is down almost 3% today:

So I am thinking we might get another test of the lows this summer. Something to keep an eye on – and maybe trade when the time is right.