Crude oil futures has made a hasty retreat from the psychological $38 per barrel level reached today and yesterday. Crude Oil futures are currently down $1.35 today trading at $36.55 per barrel at the New York Mercantile Exchange.
Earlier today the US Energy Information Administration lowered its estimation of this year’s “world demand growth” forecast by 90,000 barrels – to now 1.15 million barrels per day. The monthly forecast for 2017 was also downgraded by 250,000 to 1.21 million barrels per day.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental view of the crude oil futures market by stating, “The news came at a time when crude oil not only approached the $40 threshold, but stiff resistance is at the $36 & $37 area.” Levy adds, “Any hope for an extended crude oil (futures) rally has now been but on the back burner following this official report.”
The trend for crude oil futures just turned “up” early this month, but more information will need to be evaluated. Crude oil futures may see temporary seasonal demand, but these reports take that into consideration.
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.