• 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
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 49 mins How Far Have We Really Gotten With Alternative Energy
  • 23 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 1 day Bankruptcy in the Industry
  • 2 days The United States produced more crude oil than any nation, at any time.
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Wipeout Is Set To Continue

oil

Crude oil futures are being hit hard the week-ending February 9. Both U.S. West Texas Intermediate and international favorite Brent crude oil futures have trended lower all week. As of Thursday, they have posted five consecutive lower closes.

The catalysts include external factors like rising U.S. Treasury yields and stock market volatility. However, most of the selling pressure is being generated by worries over increasing output and rising global supplies. In addition to concerns about rising supplies, investors are also concerned about the stronger dollar’s impact on foreign demand for U.S. oil and lower demand due to seasonal maintenance.

As of early Friday, March WTI crude oil is testing its lowest level since January 2 and April Brent is challenging its lowest level since December 22. Both markets have wiped out all of this year’s earlier gains and are now trading lower for 2018.

One factor encouraging investors to begin shedding their long positions was the U.S. Energy Information Administration’s weekly inventories report.

According to the EIA, U.S. commercial crude inventories rose by 1.9 million barrels to 420.3 million in the week through February 2. Traders were looking for a 3 million barrel build. The increase was being blamed on a buildup of stockpiles in the Gulf Coast refining hub, where refiners are winding down operations for seasonal maintenance.

Stockpiles of gasoline and distillate fuels such as diesel also…




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