However, when we consider how far and how quickly the U.S. oil rig count has increased, it is possible that market participants and investors are overreacting to last week’s rig count decline.
Oil bulls jumped all over one or two weeks-worth of softer data, shouting that oil production should rise during the peak summer driving season.
Last week, we saw the first decline in the U.S. oil rig count in six months.
Although U.S. oil production declined, last week, it is still much higher than it was this time last year.
The U.S. rig count fell by a whopping two (yes two) rigs, to 756 from 758.
Crude Oil Price test for 7/6/2017
As it stated in Crude oil prices moved lower on Thursday despite a bullish report that showed a larger than expected draw in crude oil inventories.
The EAI reported that U.S. commercial crude oil inventories decreased by 6.3 million barrels from the previous week.
Gasoline inventories decreased by 3.7 million barrels last week, and distillate fuel inventories decreased by 1.9 million barrels last week Total commercial petroleum inventories decreased by a whopping 13.4 million barrels last week.
U.S. crude oil refinery inputs averaged over 17.1 million barrels per day during the week ending June 30, 2017, 251,000 barrels per day more than the previous week’s average.
API data showed U.S. crude inventories fell more sharply than expected in the latest reporting week, by 5.8 million barrels.
As it stated in
Crude Oil Price poediction 7/6/2017 technical test
WTI Crude OilThe WTI Crude Oil market initially fell during the day on Thursday, but found enough support at the $45 level to turn around.
This was exacerbated by a massive drop and crude oil inventories in America, which of course is very bearish.
Crude Oil Forecast Video 07.7.17BrentBrent markets also rallied, but found enough resistance near the $49 level to turn things around.
I don’t have any interest in buying crude oil.
If we can break down below the $45 level, the market should then go down to the $42.50 level.
collected by :Jack Alex