• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 11 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 6 hours Socialists want to exorcise the O&G demon by 2030
  • 3 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 4 hours UK, Stay in EU, Says Tusk
  • 1 day Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 2 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 2 days Conspiracy - Theory versus Reality
  • 5 hours How Is Greenland Dealing With Climate Change?
  • 2 days Chevron to Boost Spend on Quick-Return Projects
  • 1 day Maritime Act of 2020 and pending carbon tax effects
  • 2 days U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 2 days Regular Gas dropped to $2.21 per gallon today

Oil Market Forecast & Review – 30th May 2014

July Crude Oil futures finished the week lower in lackluster fashion. Despite closing on its high the previous week which should have been a lay-up for a higher opening and follow-through rally, speculative traders failed to bite on the set-up, giving long investors an early excuse to take profits and pare positions.

The framework for last week’s weakness was actually laid out the previous week when short-covering drove the market to $104.50 on the heels of a surprise decline in imports according the U.S. Energy Information Agency inventory report for the week-ended May 16. Although on paper this served as a sign that increased domestic production was reducing our dependence on foreign oil, savvy traders knew that one week did not make a trend.

The short-term price action may have suggested higher prices to follow, but veteran traders failed to chase the market higher. Instead solid bids were placed in the market, spooking weaker shorts out of their positions and giving the professional trader a better price to initiate fresh short positions. The price action suggests the market merely reflected a “buy the rumor, sell the news event”.

The ability to sift through the EIA data paid off this week for the professional because the same government agency that reported the decline in imports the week-ended May 16 showed that U.S crude oil imports averaged 7.8 million barrels per day the week-ended May 23, up by over 1.3 million barrels per day…

To read the full article

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

RegisterLogin



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