• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours How Far Have We Really Gotten With Alternative Energy
  • 9 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 22 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 4 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Expect Back And Forth Price Action Until June 5th

July Crude Oil futures have drifted sideways-to-lower since its May 6 top at $63.62 despite three consecutive weekly drawdowns in inventory. Drawdowns have even taken place four out of the last ten weeks. Furthermore, the number of producing U.S. rigs has also declined for several months although lately at a slower pace than earlier in the year. 


(Click to enlarge)

Inventory drawdowns and rig reductions, on paper are bullish indicators and should have been supportive to prices. Instead, July Crude Oil futures have weakened since May 6, dropping from $63.62 to $57.93 in nine sessions. A potentially bearish closing price reversal top has also been exerting a negative influence on the market, setting up the possibility of a correction into $55.54 to $53.63.

Although U.S. producers have been making an effort to slow down production, demand has been too sluggish to put a serious dent in total inventories which are still at an 80-year high at 482.2 million barrels. On top of this, OPEC appears ready to defend its market share of the global oil market by ramping up production. This assumption came from a May 13 report by the International Energy Agency.

In the report, the IEA stated that Saudi Arabia boosted output to the highest level in at least three decades. Even with the U.S. reducing production, the increased production by OPEC, and especially Saudi Arabia, is likely lessening hopes that supply will contract enough to maintain the current rally.

This…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News