Every time oil hits $83 and fades, the importance of that level grows.

The WTI crude oil market has been knocking on the door of that level all week long but was once again beaten back today in a quick fall to $80.22.

Just yesterday the oil market finally tilted into backwardation again and that gave the bulls a reason to buy but $83 is putting up a stiff fight. Perhaps oil companies are starting to hedge, given what’s happened in the natural gas market.