• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 day "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days "How China Could Send LNG Prices Into The Stratosphere" by Irina Slav
  • 2 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 8 days "We're All Sri Lankan Farmers Now" by James Corbett - (an important read)
  • 7 days "Oil-funded Rockefeller Foundation centers fight for climate" - Associated Press
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Prices Rise On Bullish Inventory Data

Only a week ago, crude oil seemed poised to move lower. At that time, hedge fund liquidation and rising U.S. production were driving the price action. This week is a different story. The facts about rising U.S. output remain the same, but it appears that sentiment is driving the price action at this time. Therefore, we have to conclude that prices will remain elevated until the speculators stop buying.

This week, U.S. West Texas Intermediate and international-benchmark Brent crude oil moved to their highest levels since February 1 after the government reported a surprise decline in U.S. inventories. Other catalysts behind the rally were Middle East tensions and worries about Venezuela’s production slide.

According to the U.S. Energy Information Administration (EIA), crude oil inventories declined 2.6 million barrels the week-ending March 16. Analysts were looking for a 2.5 million barrel build.

The EIA also reported a 1.7-million-barrel drop in gasoline inventories. Gasoline production averaged 9.9 million barrels in the week to March 16, with refineries operating at 91.7 percent of capacity and processing 16.8 million barrels of crude daily.

Additionally, crude imports dropped by half a million barrels per day, that contributed to the draw. Exports were up slightly.

Speculation that the United States may reimpose sanctions on Iran also helped boost prices because this would lead to a disruption of supply.

While it may be true that…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News