- Crude oil settled higher today but posted sharp losses for the week, as concerns over a potential market shortfall of oil eased after Libyan ports reopened and on the possibility that Iran might still export some crude despite U.S. sanctions.
- August WTI crude settled +1% at $71.01/bbl but lost 3.8% on the week, briefly dipping below $70 yesterday, while September Brent gained +1.2% to $75.33/bbl but fell 2.3% for the week amid a 7% mid-week shellacking.
- “The market is trying to assess whether more sources of oil will get us to the point where daily global oil production is once again ahead of our daily consumption,” says Price Futures Group senior analyst Phil Flynn. “So far it has not.”
- “We’re still talking about a market that is potentially dangerously low in terms of spare capacity,” says Schneider Electric (PA:SCHN)'s Robbie Fraser. “As long as demand holds together, there just isn’t much room on the supply side of the market to pull prices lower. That leaves price risk stacked in favor of the bulls,”which is why prices enjoyed some support heading into the weekend.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, OILD, OILU, USAI
- Now read: It's Not A Great Time To Buy The Oil Services ETF
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