May West Texas Intermediate crude oil futures are in a position to finish lower for a second week. The fundamentals are bearish and the weekly technical chart pattern indicates that a key, long-term uptrending Gann angle has been breached. It seems like it’s just a matter of time before the market begins to accelerate to the downside.
The bearish factors are started to pile up and selling pressure is beginning to mount, which could force the hedge funds to start liquidating their massive long positions. Helping to weigh on prices are a stronger U.S. Dollar, signs of an inventory build at the U.S. futures delivery hub in Cushing, Oklahoma, surging U.S. crude production and investor concerns over a potential trade war.
The U.S. Dollar
The dollar is rebounding at the end of the week after a short-term break. This is helping to pressure foreign demand for crude oil. A weaker Euro and expectations for as many as four interest rates hikes this year are helping to underpin the Greenback.
The EIA Report
According to the U.S. Energy Information Administration, U.S. crude inventories rose by 2.4 million barrels in the week-ended March 2, compared with analysts’ expectations for an increase of 2.7 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 605,000 barrels, the EIA said, the 11th straight week of declines.
Weekly data from the U.S. Department of Energy also showed weekly U.S. crude production hit a…