Oil Under Pressure?
Today’s Spotlight Market
Crude Oil futures have been one of the losers in the ongoing Greek debt crisis, suffering several losing sessions due to a slightly stronger US Dollar.? The greenback had gotten a boost due to uncertainty and frustration on the part of traders with regard to Greece?s stubbornness during negotiations.? The country has essentially been playing a game of chicken with? European leaders.? The country is attempting to get better terms and believes the EU has more to lose by removing Greece from the currency union than gain from severing ties with the economically embattled nation.
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Fundamentals
Crude Oil futures have also felt pressure from inventory data, which showed the US supply glut growing again.? Crude Oil inventories rose by 2.4 million barrels in the week ending June 26th, which is the first weekly inventory build in 9 weeks.? US inventory levels are at 465.4 million barrels, which is the highest level for this time of year in 80 years.? Despite the decline in rig counts in the US, production continues to increase.? Production rose 9,000 barrels a day to 9.701 million barrels a day in April, which was the highest level since May 1971.? Shale Oil production has been especially resilient, especially considering prices are 45% below last year?s levels.
Technical Notes – View Today’s Chart
Turning to the continuation chart, we see the August Crude Oil contract closing below the recent low close of 57.51.? This suggests prices could come down to test the 53.55 level on the downside.? If prices do snap back above 57.51, Oil may continue its range bound trading.
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