• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 7 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 8 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days Bankruptcy in the Industry
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Are We About To See A Short Covering Rally In Oil?

August Crude Oil Futures

Profit-takers and bargain-hunters are helping to prop up crude oil prices from 10-month lows late in the week. Aggressive counter-trend investors may be buying relatively cheap crude oil despite bearish market sentiment due to the persistent supply glut and doubts over the OPEC-led plan’s ability to balance the market.

Despite the technical bounce, August West Texas Intermediate crude oil is still in a position to close lower for the week and month while setting their worst first-half year decline in 20 years. This is taking place despite the OPEC-led plan to reduce output, trim the global supply glut and stabilize prices.

(Click to enlarge)

This week’s price action strongly suggests that traders remain skeptical of OPEC’s ability to balance supplies. While the plan to cut production by 1.8 million barrels per day (bpd) has been in place since January, not all OPEC and non-OPEC participants have fulfilled their pledges. Additionally, their attempts are being met by soaring output from the United States.

Recent data shows that increased shale drilling has pushed U.S. oil production more than 10 percent over the previous year to 9.35 million bpd, close to the production level of top exporter Saudi Arabia.

Other reports show that inventories through April are up 80 million barrels since the beginning of the year, highlighting the inefficiency of OPEC’s market management.

Forecast

The…




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