The week started with June West Texas intermediate crude oil futures holding steady despite forming a potentially bearish closing price reversal top on April 12 at $54.14. The move suggested that speculators led by hedge and commodity funds were willing to sit in their long positions and who could blame them because the odds were stacked in their favor.
Stacked on the side of the bullish investors were the events in Syria, supply disruptions, Saudi Arabia’s support of an extension of the OPEC-led program to cut supply and the global oil supply.
The rhetoric coming out of Syria even sounded threatening as Russia, Syria and Iran strongly warned the United States against launching new strikes on Syria.
Russian Foreign Minister Sergey Lavrov denounced the U.S. missile strikes on Syria as a “flagrant violation” of international law. Additional such actions would entail “grave consequences not only for regional but global security,” Lavrov said.
Syrian Foreign Minister Walid Moallem said the meeting sent a “strong message” to Washington. Iran’s Mohammed Javad Zarif emphasized that the participants agreed that unilateral actions by the U.S. were unacceptable.
However, after a few days, the story out of Syria seemed to cycle out of the news as investors shifted their focus on North Korea.
In addition to the oil supply disruptions in Libya, traders are also watching outages in Canada and concerns in…