• 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
  • 21 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 7 days America should go after China but it should be done in a wise way.
  • 23 hours Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Oil Prices Set to Rise as Global Stock Refills Ramp Up

Oil Prices Set to Rise as Global Stock Refills Ramp Up

China's increased oil inventory building,…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Oil Prices Jump To Six-Month High

Oil prices surged to their highest levels in six months on Wednesday as the Fed left interest rates unchanged. WTI jumped by 2.8 percent to $45.29 per barrel and Brent climbed by 3.17 percent to $47.19 per barrel.

Those are the highest prices so far in 2016 and the oil markets continue to bet on rising momentum for crude. The Federal Reserve added strength to oil when it announced its decision to leave interest rates unchanged, a move that caused the dollar to weaken and oil prices to rise. The Fed also softened its language regarding its concerns over the health of the global economy, which signals a bit of confidence that demand could pick up pace. Related: $500 Billion In Lost Oil Revenues Forces Gulf Nations To Turn To Debt Markets

The EIA also revealed on Wednesday that U.S. oil production continues to fall. Weekly output fell by another 20,000 barrels per day to 8.938 million barrels per day. U.S. production is down almost 800,000 barrels per day from the April 2015 peak.

But there are still some warning signs for crude oil. While industry data pointed to a decline in crude oil inventories, the EIA disappointed oil traders when it reported an uptick in storage levels. The U.S. set another all-time record, with storage rising by 2 million barrels last week to 540 million barrels. Related: Massive Oil Theft By Pirates Costs Nigeria $1.5 Billion Every Month

Also, the durability of the sharp rise in oil prices over the past two months – both WTI and Brent are up about 70 percent since February – could be tested if speculators decide to lock in profits and sell off their long bets. Additionally, if U.S. shale drillers decide to send rigs back into the oil patch, some drilled but uncompleted shale wells could begin to come online, adding new supply to the already flush market. Oil bulls are hoping the worst is over, but they are not out of the woods yet.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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