Crude oil futures briefly reached the $44 per barrel benchmark in very early trading based on the outlook of oversupply concerns as energy industry data revealed crude oil inventories had reached a new record high. Crude oil futures finished the day $2.43 per barrel higher at the New York Mercantile Exchange.
The American Petroleum Institute (“API”) reported US crude oil inventories rising by 10.5M barrels to 450M barrels in the week ending March 13th. A high-profile media poll had initially indicated analysts expecting only a 3.8M build-up of inventory, so you can realize the significant difference.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his fundamental view regarding the current crude oil futures situation, “When you take into consideration the crude oil inventory increases we’ve seen already, adding nearly triple what is expected is a shock to the traders and the market.” Brady adds, “After all, crude oil (futures) finds it’s way with with what is expected and what is actually reported…”
Crude oil’s trend is clearly down with no bottom yet in sight – especially hitting new contract lows just today. Crude oil futures is not a market I trade, but I report about it because it correlates with the price of gasoline – a product we are so dependent upon.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.