• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 8 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 1 day We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 4 hours Trump has changed into a World Leader
  • 5 hours Beijing Must Face Reality That Taiwan is Independent
  • 2 hours Let’s take a Historical walk around the Rig
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 4 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 2 days Might be Time for NG Producers to Find New Career
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Are We Nearing A Trend Reversal For Crude?

Midland Oil

June West Texas Intermediate Crude Oil futures is under pressure this week, but in a position to close higher for the week if enough buying comes in to drive the market over $49.62 on the close on Friday. I mention this because this will mean the surprise draw reported by the U.S. Energy Information Administration this week is exerting a positive influence on crude oil prices.

If crude oil prices fail to close higher, then this will indicate that investors believe rising gasoline stocks will have an extended bearish influence on crude oil prices.

On Wednesday, April 26, traders initially drove prices higher from their intraday lows after U.S. data showed refiners used up more crude oil than ever from storage tanks, drawing down stockpiles. However, prices weakened into the close as falling gasoline prices weighed on the crude oil market.

Based on the government report, we can conclude that refineries returned from maintenance season, increased runs to an all-time modern record for crude processing, and turned the crude oil surplus into petroleum products.

The U.S. Energy Information Administration supported this conclusion when it reported that U.S. crude inventories fell 3.6 million barrels last week. The draw was significantly more than analysts and traders were expecting and completely opposite from the nearly 900,000-barrel build reported late Tuesday by the American Petroleum Institute.

The EIA report also showed that refiners processed nearly…




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