• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 5 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 4 hours China goes against US natural gas
  • 2 days Mike Shellman's musings on "Cartoon of the Week"
  • 5 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 3 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 22 hours Why hydrogen economics does not work
Alt Text

Why Saudi Arabia Cut July Oil Production

Saudi Arabia’s oil production in…

Alt Text

Something Strange Is Happening In The Saudi Oil Patch

According to Bloomberg, Saudi Arabia…

Alt Text

EIA: U.S. Oil Production Growth Is Slowing

The EIA has revised down…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Oil Market Forecast & Review 12th April 2013

June crude oil futures traded mixed last week as traders had to deal with conflicting signals. Technically, the market is oversold on a short-term basis which gives it a slight upside bias. In addition, a weaker U.S. Dollar is making it cheaper for foreign buyers. Increased demand for higher-yielding assets is also helping to underpin prices.

On the downside, however, is the thought that the pace of U.S. economic recovery is weakening. The recent lower-than-expected jobs data indicated an economy filled with uncertainty as business aren’t hiring at a rate necessary for the Fed to lift its asset-purchasing program. Furthermore, huge supply and low demand are still major issues. The International Energy Agency recently cut its global demand forecast for 2013 for the third consecutive month. The agency also predicted the weakest demand for Europe since the 1980’s.

In addition to the EIA forecast, the Organization for the Petroleum Exporting Countries (OPEC) also cut its global demand estimate for the second time in two months last Wednesday. Last week, U.S. crude oil inventories increased by 0.3 million barrels to hit 388.9 million. These reports are all indicating that the fundamentals are not supporting a global economic recovery and that pressure is likely to remain on crude oil prices.

Taking a look at the weekly June crude oil futures contract chart, we see that the market is straddling a major 50% balance level. Based on the top at $107.86…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News