• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 2 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 1 day Mike Shellman's musings on "Cartoon of the Week"
  • 1 hour Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 1 hour China goes against US natural gas
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 19 hours Why hydrogen economics does not work
Alt Text

Egypt Aims For Natural Gas Dominance In The Mediterranean

Positioned on the Mediterranean Sea…

Alt Text

Why The U.S. Won’t Sanction Venezuela’s Oil

Rumors of the U.S. government…

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