Falling U.S. commercial oil stockpiles are price supportive and high U.S. product demand, including gasoline demand, is helping.
China is second only to the United States in its overall energy consumption.
If Energy Information Administration’s release confirms API’s finding of 9.2 million barrel stockpile reduction, Nymex futures could move back to $50, say analysts.
Alternatives for the Right Place and Time
Today's active investors are on a continual search for higher yields in make sense investment vehicles for their portfolios. But the level of interest doesn’t seem to be limited to private investors alone. Institutional investors are on the same “hunt” for higher yields than are available from the more traditional resources of bonds, equities and the like...
"Producers should find encouragement from demand, which is growing year-on-year more strongly than first thought,” the IEA said.
READ about today's 5 OIL MYTHS; then consider buying real energy assets.
Oil prices are profiting from another sharp decline in U.S. crude oil stocks, underpinning the theory that oversupply in the oil market is diminishing quickly.
Crude inventories last week fell by 7.8 million barrels, more than expected.
Saudi oil minister made it clear that the OPEC heavyweight will do ‘whatever it takes’ to bring global stock levels lower.
Negative price impact at the start of the week coming from OPEC and compliance focus will probably dissipate.