• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 2 hours Sources confirm Trump to sign two new Executive orders.
  • 2 hours Why Wind is pitiful for most regions on earth
  • 3 mins In a Nutshell...
  • 18 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 2 days Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 19 mins Why Oil could hit $100
  • 3 days Happy 4th of July!
  • 3 days Putin Paid Militants to Kill US Troops
  • 3 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 4 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 4 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 1 day Coronavirus hype biggest political hoax in history
  • 3 days Apology Accepted!
Editorial Dept

Editorial Dept

More Info

Premium Content

Predicting Oil’s Next $10 Move

  • Oil prices have rallied almost 500% in a couple of months, but the next big move is likely to be down as fears of a second wave are materializing in some of the largest US states.

Looking back on the first half of 2020 in energy, it has been marked by one of the most volatile periods in the history of crude. The main WTI futures contract, CL, hit a peak of $65.65 early in January before beginning a collapse that would see the May contract do the unthinkable on its expiration date and turn negative. At one point, traders were paying $40 for you to take a barrel of oil off their hands.

Then began a bounce that, in some ways was just as spectacular. From the switch to the June contract onwards, CL has jumped close to 500% in a couple of months.

After filling the massive gap caused by the Saudi/Russia price war in March though, then peaking twice before falling back, the big bounce is now over as a continuous, momentum-driven move, with this week looking to end as a small net negative for crude futures..

So, what’s next? What will be the direction of CL’s next $10 move?

After that amount of volatility in six months, it is tempting to say that we will see an extended pause now that a level has been found, but that is unlikely. Globally, things are calming down as the coronavirus pandemic recedes, but here in the U.S. there has been a massive setback in the re-opening plans as new cases have hit an all-time high. Oh, and lest you say that is simply down to more testing, the positivity rate of tests has also climbed. That has come mainly in states that re-opened early, so it is clear that while shutting down is unpopular…





Leave a comment

Leave a comment




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