• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 5 hours The Political Debacle: Brexit delayed
  • 7 hours Tidal Power Closer to Commercialisation
  • 4 hours New Rebate For EVs in Canada
  • 5 hours No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 11 hours US-backed coup in Venezuela not so smooth
  • 15 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 8 hours Solar to Become World's Largest Power Source by 2050
  • 14 mins Trump sells out his base to please Wallstreet and Oil industry
  • 8 hours Will Trump Cave Again
  • 9 hours Read: OPEC THREATENED TO KILL US SHALE
  • 19 hours Biomass, Ethanol No Longer Green
  • 18 hours Malaysia Oil & Gas Updates
  • 14 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months

Breaking News:

UK Oil, Gas Production Up 20% Since 2014

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Rally’s Fate Could Hang On EIA Inventory Data Next Week

Despite the previous week’s potentially bearish chart pattern, July Crude Oil futures managed to trade higher most of the week. The key number which held as support was the previous week’s low at $59.09. A trade through this level would have confirmed the top at $63.62. This would have set into motion a potential correction into $55.54 to $53.63. 

Last week’s inside move suggests trader indecision. However, it also indicates impending volatility. While the previous week’s move may be indicating the emergence of potentially bearish fundamental news, last week’s inability to follow-through to the upside or downside suggests that investors may be waiting for more information about the supply and demand conditions before choosing a direction.

On May 6, July Crude oil reached a top at $63.62 before breaking for two days into $59.09. The news of the first inventory drawdown since November may have fueled the surge into the high, but it was the higher-than-expected gasoline inventory figures that triggered the sell-off.

The news was bearish enough to cause a short-term break, but it was not enough to trigger the near-term correction that many investors have been anticipating. This indicates that investors are waiting for further direction from the fundamentals.

On May 13, traders received more conflicting inventory data which held the market in check for another day. According to the U.S. Energy Information Administration,…




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