• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 6 hours End of EV Subsidies?
  • 12 hours Citi cuts Apple's price target
  • 6 hours Maersk's COO statment.
  • 8 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 1 hour Asian stocks down
  • 2 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 8 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 10 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 9 hours Regular Gas dropped to $2.21 per gallon today
  • 4 hours Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 7 mins IT IS FINISHED. OPEC Victorious
  • 2 hours Price Decline in Chinese Solar Panels
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

News Driven Market Could Easily Turn Around

Wall st.

Crude oil and gasoline futures are set to finish the week in strong positions as investors continue to bet on a positive outcome from talks regarding a production freeze. Both markets are being driven by tremendous momentum with very little concern about the traditional supply/demand numbers. This is clearly a sign that the market is focused on the future and not the now.

In the natural gas market, the strength from earlier in the summer just doesn’t seem to want to go away as buyers continue to bet that the inventor surplus will end the summer cooling season at relatively low levels going into the fall quiet period and the winter high demand season.

As we near the end of the week, West Texas Intermediate crude oil is sitting at a six-week high and Brent crude oil at an eight-week high. All of this is occurring not because a deal has been reached to freeze production, but because the world’s biggest producers are “preparing” to discuss a possible freeze in production levels. Talk about speculation.

Before the market began its rally on August 3, there were reports showing that hedge funds were dominating the trade with record short positions. Now, we have strong evidence that these funds are paying anything to cover their positions, driving up prices. I wonder what the charts will look like when the hedge funds decide to shift to the long side?

Lingering summer heat is helping bullish natural gas traders to stay in the game a…

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
-->