• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 7 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 4 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 2 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 2 hours California's Oil Industry Collapses Despite Shale Boom
  • 28 mins North Dakota oil output totals 1.39 million b/d in March, up 4% on month: state
  • 6 hours IMO2020 To scrub or not to scrub
  • 7 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 4 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 2 hours Global Warming Making The Rich Richer
  • 5 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 12 hours Shale to be profitable in 2019!!!
  • 11 hours Crude oil?
  • 4 hours Iceland Reducing Gas Stations By Half By 2025
  • 7 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Expect Back And Forth Price Action Until June 5th

July Crude Oil futures have drifted sideways-to-lower since its May 6 top at $63.62 despite three consecutive weekly drawdowns in inventory. Drawdowns have even taken place four out of the last ten weeks. Furthermore, the number of producing U.S. rigs has also declined for several months although lately at a slower pace than earlier in the year. 


(Click to enlarge)

Inventory drawdowns and rig reductions, on paper are bullish indicators and should have been supportive to prices. Instead, July Crude Oil futures have weakened since May 6, dropping from $63.62 to $57.93 in nine sessions. A potentially bearish closing price reversal top has also been exerting a negative influence on the market, setting up the possibility of a correction into $55.54 to $53.63.

Although U.S. producers have been making an effort to slow down production, demand has been too sluggish to put a serious dent in total inventories which are still at an 80-year high at 482.2 million barrels. On top of this, OPEC appears ready to defend its market share of the global oil market by ramping up production. This assumption came from a May 13 report by the International Energy Agency.

In the report, the IEA stated that Saudi Arabia boosted output to the highest level in at least three decades. Even with the U.S. reducing production, the increased production by OPEC, and especially Saudi Arabia, is likely lessening hopes that supply will contract enough to maintain the current…




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