Not a good time for a bearish EIA report and it was very bearish. $60 here we come.
Thanks Jim!
From Oilprice.com:
https://oilprice.com/Energy/Crude-Oil/Oil-Prices-Slip-As-Inventories-Increase-Across-The-Board.html
"A day after American Petroleum Institute estimated a solid build in gasoline inventories that pressured West Texas Intermediate, the Energy Information Administration added to the bearish mood by reporting a build in both crude oil and gasoline inventories for the week ending June 1.
Crude oil stockpiles, the authority said, rose by 2.1 million barrels in the week to June 1, versus a decline of 4.2 million barrels a week earlier. Gasoline stockpiles moved higher by 4.6 million barrels, compared with a 500,000-barrel build in the prior week. Distillate inventories added 2.2 million barrels, after a 600,000-barrel increase in the week before."
3 month graph of crude oil
https://www.nasdaq.com/markets/crude-oil.aspx
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I do not know where this market is headed as for the first time in awhile I am very neutral on it. Clearly higher numbers will bring on selling but also clear is the fact it is trying to build a base in the low $64.xx range. Talk of Iran wanting to expand its nuclear program with an oversold market are supporting it, while serious technical damage and the FED wanting to push it lower are negative. The only position(In Oil) I have is a short Aug 69 call and if we break todays lows I have an order to clear that. In the mean time I watch copper going ballistic to the upside. I think the next big move will be the other metals Gold/Silver/Plat and I am hoping for one more push lower so that I can get long them.
The bearish report was mostly consumption, down 2mmb/day, probably Memorial Day.
Also, the relentless growth in US output - 10,800,000 bpd (wow) continues.
All of which means I have no idea where oil is going.
Thanks Patrick,
If Richard doesn't know, then nobody does.