Oil prices touched a more than two-and-a-half-year high this week, but have faltered mid-week. Market sentiment is more bullish than it has been in a long time, but the risk of falling back is still very much alive. There has been a series of market forces that have come together, all at just the right time, to push Brent up into the mid-$60s per barrel. Falling inventories, near-unanimity from OPEC to extend the production cuts, a slowdown in U.S. shale, bullish positioning from oil traders and some unexpected unrest in the Middle East. Taken together, these factors caused Brent to gain $10 per barrel in the past month. But as has happened in the past, oil price rallies can quickly reverse if sentiment shifts. That tends to occur when the gains look to have gone too far. And there are some reasons to believe that oil is overpriced at […]