• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 6 mins WTI @ $75.75, headed for $64 - 67
  • 2 hours Trump vs. MbS
  • 3 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 7 hours The Dirt on Clean Electric Cars
  • 13 hours Uber IPO Proposals Value Company at $120 Billion
  • 4 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 2 hours EU to Splash Billions on Battery Factories
  • 17 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 14 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 8 hours Coal remains a major source of power in Europe.
  • 4 hours Poland signs 20-year deal on U.S. LNG supplies
  • 20 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 16 hours Nopec Sherman act legislation
Alt Text

Why Crypto Miners Are Paying Attention To The Permian

The Permian is literally burning…

Alt Text

U.S. Oil Companies Face $240 Billion Debt Mountain

U.S. oil producers are facing…

Alt Text

Rig Count Inches Lower As Oil Prices Stabilize

Baker Hughes reported a dip…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Where Further Upside For Oil Comes From

Fracking

What did we learn about the crude oil market this week?

On the bearish side of the equation, we learned that according to the U.S. Energy Information Administration, crude oil inventories rose for the eighth straight week to a record 520.2 million barrels.

We also saw the U.S. Dollar soar, making dollar-denominated crude oil more expensive for foreign buyers, which could lead to lower demand. This factor could exert even more pressure before mid-month because traders have driven up the chances for a Fed rate hike at its next meeting on March 15 to about 70 percent. If the Fed hikes then crude could feel more pressure.

On the bullish side of the equation, we found out from Reuters that OPEC boosted already strong compliance with the cartel’s six-month agreement to 94 percent in February.

We also know that hedge and commodity funds are sitting on record long positions. This sounds bullish, but the price action this year suggests they are accumulating positions on the dips, and are reluctant to buy strength. This may indicate that they are willing to buy low and sell high, but aren’t too interested in buying high and selling higher.

If you need a comparison, think of the current rally in the stock market. This is a momentum driven rally because investors have been willing to buy high and sell higher.

Using basic math, I think the market has been trading in a range because U.S. production has been off-setting OPEC’s cuts. The…

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