• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 9 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 1 hour Socialists want to exorcise the O&G demon by 2030
  • 5 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 15 hours Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 5 hours Maritime Act of 2020 and pending carbon tax effects
  • 20 hours Chevron to Boost Spend on Quick-Return Projects
  • 20 hours Conspiracy - Theory versus Reality
  • 1 day UK, Stay in EU, Says Tusk
  • 1 day What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 1 day German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 1 day Regular Gas dropped to $2.21 per gallon today
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Investors Should Sell Weakness For The Time Being

June Crude Oil futures rallied earlier this week, taking out the psychological $60.00 level in the process. The rally was triggered by a price hike by Saudi Arabia, a protest at a key Libyan port and thoughts that U.S. inventories had finally leveled off.

The news from Saudi Arabia was light this week, but one event did help underpin the market. The Saudis announced that it had raised its official selling prices for its Arab Light grade crude to the United States and Northwest Europe. The move was based on stronger demand in those two areas.

Another event that helped support higher prices was the stoppage of crude flows to the eastern Libyan oil port of Zueitina by protestors. This move hampered exports. This was a key event because Zueitina is one of the few Libyan ports still exporting oil. Unlike the events in Yemen that are still being watched while having no effect on supply, a shutdown of Zueitina will have an effect on supply. At this time, Libyan oil output is under 500,000 barrels per day which is well below what it pumped just five years ago. Taking out Zueitina while not a major event, does limit output further.

This week’s U.S. Energy Administration inventory report for the week-ending May 1 showed that crude oil inventories fell 3.9 million barrels. On paper, this was a bullish number because traders had been looking for a slight rise of 1.3 million barrels. This news triggered a spike in oil prices that was met with heavily resistance,…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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