June Crude Oil continued its journey higher yesterday, after resting on Friday. It made another new high for the year reaching 47.98 as supply disruptions continue to affect the market. With Canada, Nigeria, Libya and now Venezuela having outages, worries of a supply shortfall are creeping into the price of crude oil. Goldman Sachs also is talking up the price of Crude Oil. Goldman is saying the oil market supply situation probably went to a deficit this month from a supply glut.
The rally couldn’t break above the 48 handle however as Genscape reported another build in Cushing, Oklahoma this time of 694,176 barrels. This was a surprise as traders felt a decline was going to occur because of the Canadian wildfires. There are also reports of Libya, Nigeria and Canada getting ready to resume production.
Crude Oil ended near the highs and with the API and EIA reports due out on Tuesday and Wednesday any serious declines in inventory could send price towards the $50 level, in my opinion.
CLH16
- High - 47.98
- Low - 46.15
- Last - 47.89
Daily Pivots for 5/17/16:
- R2 49.17
- R1 48.53
- PIVOT 47.34
- S1 46.70
- S2 45.51