• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 3 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 18 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 7 hours Saudi Arabia turns to solar
  • 4 hours Why is permian oil "locked in" when refineries abound?
  • 11 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 hour Could Venezuela become a net oil importer?
  • 7 hours Teapots Cut U.S. Oil Shipments
  • 6 hours Oil prices going down
  • 7 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 23 hours Sell out now or hold on?
  • 23 hours Could oil demand collapse rapidly? Yup, sure could.
  • 24 hours Gazprom Exports to EU Hit Record
  • 22 hours "The Gasoline Car Is a Car With a Future"
  • 8 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 17 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
Editorial Dept

Editorial Dept

More Info

Trending Discussions

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

Trending Discussions





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