• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 7 hours Waste-to-Energy Chugging Along
  • 3 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 3 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 3 hours Venezuela continues to sink in misery
  • 5 hours Let's Just Block the Sun, Shall We?
  • 13 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 14 hours Regular Gas dropped to $2.21 per gallon today
  • 43 mins What will the future hold for nations dependent on high oil prices.
  • 12 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 1 day Air-to-Fuels Energy and Cost Calculation
  • 8 hours UK Power and loss of power stations
  • 22 hours $867 billion farm bill passed
  • 8 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 13 hours Global Economy-Bad Days Are coming
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Markets Approach Battle Zone

Barrels

June West Texas Intermediate crude oil futures closed more than 1 percent higher on Thursday, putting the market in a position to post a solid gain for a second consecutive week. Despite the strength into the latter half of the week, traders remained skeptical about the market’s ability to sustain its current upside momentum.

The U.S. Energy Information Administration’s (EIA) weekly report released on Wednesday showed crude inventories at record levels for the week-ending March 31. Initially, traders responded by selling. However, the move was short-lived and by Thursday, aggressive counter-trend buyers were back, putting the market in a position to challenge the week’s high.

While some analysts are claiming that the current run-up is being supported by improving refinery runs in anticipation of the spring/summer driving season and a decline in gasoline inventories, I think that some of the credit for the move can be placed on speculative buying ahead of a possible announcement of an extension of the OPEC-led plan to cut output, trim the global supply glut and stabilize prices.

However, as a technical trader and a price action guy, I think the best thing that happened to this market over the past month has been the aggressive trimming of positions by hedge funds and commodity money managers. When they built record long positions earlier in the year, they essentially jammed up the market and it had nowhere to go.

Now that the number…

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