Crude Oil Price - Feb 28

[dan_s]

Late Monday a report from energy provider Genscape showed a build of more than 800,000 barrels of crude at the Cushing storage hub in Oklahoma. This caused oil to open lower on Tuesday.

However .... Around noon on Tuesday all of the technical flashed "Strong Buy" after a Reuters survey found OPEC cut its oil output for a second month in February, following a record high compliance level by its members in January.

In February, supply from the 11 OPEC members with production targets under the deal has averaged 29.87 million bpd, down from a revised figure of 29.96 million bpd in January and 31.17 million bpd in December, according to the Reuters survey.

The continued effort by OPEC and other producers including Russia to tackle the supply glut in the industry came against fresh concerns that rising U.S. crude production may curtail the oil cartel and other producers' efforts.

As I have been saying for months .... this tug of war between the Bulls and Bears will continue until evidence of physical tightening of supply & demand shows up in the inventory reports. It should happen in the next few weeks, but don't hold your breath. In April, refiners are expected to draw more crude from inventory to ramp up production of summer blend gasoline. It happens every year.