• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 22 mins Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 hours California Threatens Ban on ICE Cars
  • 2 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 2 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 3 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 1 day Solar Industry Lays Claim To The 2020s; Kicks Off The Solar+ Decade
  • 2 hours IMO2020 To scrub or not to scrub
  • 22 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 7 days How can Trump 'own' a trade war?
  • 6 hours Global Warming Making The Rich Richer
  • 1 day U.S. and Turkey
  • 2 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 7 days China, U.S. Hold 'Productive' Trade Talks In Beijing
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

The Bullish News Behind This Oil Price Bounce

April crude oil futures are poised to close higher for the week. It wasn’t an agreement to freeze production at January levels that drove the market higher. It wasn’t a drop in supply either. The market found support after weekly data from the U.S. government revealed a decline in weekly domestic crude output.

The week began with OPEC and Non-OPEC members still discussing a potential production freeze. Saudi Arabia and Russia are still behind the proposal, but Iran is not, calling it “a joke”. The Saudis are pretty firm about freezing production, but totally against cutting production, saying recently “it won’t happen”.

U.S. crude oil supply continued to rise. The American Petroleum Institute reported a 9.9 million barrel increase for the week-ended February 26. The U.S. Energy Information Administration reported that inventories rose 10.4 million barrels during the same time period. Both reports exceeded the 2.5 million barrel estimate. Once again I have to ask myself, “How can they both be so far off from the actual?”

The jump in supply didn’t matter this week, however, because the professionals appear to have shifted their focus from the past to the future. Oil supply is being perceived as old news while oil production is being looked at as the future.

This week, the EIA reported that total crude production fell by 25,000 barrels to stand at 9.077 million barrels a day. This is a positive…




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