Oil Price at the close on Sept 25

dan_s · Post by **dan_s** » Mon Sep 25, 2017 3:05 pm

In my opinion, the rally into the close on Monday and holding over $52/bbl is bullish and a classic short covering rally. It is obvious that oil supply/demand is tightening, but it takes awhile before the Wall Street Gang will admit it. Demand exceeds supply by over a million barrels per day. Once all the Gulf Coast refineries are back on-line, we should see some BIG DRAWS from U.S. crude oil storage week-after-week. It may take a few more weeks to start. Outside of the U.S. crude oil inventories are on steady decline. YOY demand growth in Q2 set a record. - Dan
---------------------------------------
Investing.com – Crude oil prices settled higher on Monday amid growing expectations that producers will extend output cuts sooner rather than later as traders cheered signs that the market is starting to rebalance. < What's really happening is that speculators playing the short side have given up on that trading strategy. - Dan

On the New York Mercantile Exchange crude futures for November delivery rose 3.1% to settle at $52.22 a barrel, while on London's Intercontinental Exchange, Brent gained 3.5% to trade at $58.87 a barrel.