Crude Oil futures are up $2.12 per barrel today to highs not seen since December after inventory data revealed domestic oil supplies rose to levels less than expected last week. Crude oil futures are currently trading just above $59 a barrel at the New York Mercantile Exchange.
According to the US Energy Information Administration, crude oil inventories increased by 1.9M barrels in the week ending April 24th, falling short of the expectations for an increase of 2.3M barrels. As it stands now, domestic oil inventories total nearly 491M barrels which is the most in 80 years – even drilling activity waning!
Kevin Riordan, director of research at Capital Trading Group in Chicago, shared his fundamental analysis regarding the current crude oil futures situation by stating, “The current rally in crude oil (futures) has the look and feel of a relief rally after falling too fast and too low.” Riordan adds, “Eventually the fundamental situation of supply and demand will catch-up with the markets.”
The trend for crude oil is up and with new highs breaking out today there is no top yet in sight. We’re seeing the repercussions of higher oil prices at the pump – already a dollar higher per gallon from the lows.
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