Crude oil futures traded below $50 per barrel today for the first time since the initial down-move In March took oil prices to the $44 dollar area. Crude oil futures are trading down $1.69 as of this writing currently at $49.14 per barrel at the New York Mercantile Exchange.
The analysts reportedly were expecting a drop in supply of nearly TWO MILLION barrels, but the API reported a rise of 2.3M barrels here in the US as of last week – a significant spread. Another report from the Energy Information Administration may show a slightly less amount of crude oil stockpiles as of July 17th.
“For a very brief amount of time it appears peak summer demand was reflected in the API & EIA estimates,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, regarding the fundamental assessment of the crude oil futures markets. Plotkin added, “With the yearly summer demand picture behind us, the crude oil market could very easily make new year to date lows.”
The technical trend for crude oil is down with no bottom yet in sight. With crude oil below $50 per barrel, maybe us consumers can see gasoline prices reflected lower as well…
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