• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Could Venezuela become a net oil importer?
  • 9 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 6 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 12 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 6 hours Why is permian oil "locked in" when refineries abound?
  • 3 hours Gazprom Exports to EU Hit Record
  • 3 hours Could oil demand collapse rapidly? Yup, sure could.
  • 4 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 3 hours Oil Buyers Club
  • 5 hours Oil prices going down
  • 1 day Teapots Cut U.S. Oil Shipments
  • 47 mins Saudi Arabia turns to solar
  • 20 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 6 hours EVs Could Help Coal Demand
  • 12 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
Alt Text

The Fate Of Vision 2030 Rests On Saudi Aramco IPO

Crown Prince Mohammed Bin Salman…

Alt Text

Hedge Funds Bullish On Oil For 2018

Despite the disagreement between the…

Alt Text

Shale Hedges Threaten The Oil Rally

The recent increase in oil…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

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…

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