Wells Fargo: Recent Oil Rally Merely A 'Head-Fake'

In a recent report, Wells Fargo analysts gave an update on their outlook for crude oil. The report also included updated crack spread numbers and differentials.
Oil finding a bottom?
Perhaps the most interesting part of the analysis for oil investors was Wells analysts’ take on where oil currently stands in its bottoming process. Falling rig count numbers and oil’s recent multi-week rally have some oil investors hopeful that for oil will continue it's recent positive momentum. However, Wells Fargo analysts disagree.
“We remain in the camp that this oil price move is more of a head-fake and is part of the crude oil bottoming process. We fully expect to see crude retreat once more before we’ll be convinced the bottom has been set,” analysts explained in the report.
For now, oil prices will likely continue to be volatile, as oil and energy ETFs such as the United States Oil Fund, LP (NYSEMKT: USO), the United States 12 Month Oil Fund, LP (NYSEMKT: USL) and Energy Select SPDR Fund (NYSEMKT: XLE) have already endured wild price swings so far in 2015.