Is This The “New Normal” For Oil Prices?

10 Jul 2017   Prices

The oil market is suffering from whip lash. After plunging close to $42 per barrel in late June, and officially entering a bear market, WTI has gained nearly 10 percent in two weeks. By the end of this past week, however, prices were down again. The latest EIA report offered a lot for oil bulls to like. Not only did crude oil inventories drop by a rather large 6.3 million barrels – one of the largest declines in 2017 – but gasoline storage also declined significantly. In the past, it seemed that every crude draw was largely the result of much higher refining runs, and absent a sharp uptick in demand, that extra oil was spun into gasoline. The end result tended to be an uptick in gasoline storage, offsetting the bullish effect of the crude draw. But this time, there was no such mitigating data point – the […]

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