Global Oil Market gearing up for an interesting June

[dan_s]

June 9th:

Baker Hughes on Friday, June 7th reported that the number of active U.S. rigs drilling for oil fell by 11 to 789 this week. That followed a climb of 3 rigs last week. The total active U.S. rig count, meanwhile, declined by 9 to 975.

Weekly Oil Price Forecast
The combination of the potentially bullish weekly chart pattern and the news of a deal between the United States and Mexico are likely to underpin prices this week. Furthermore, as we move closer to the OPEC meeting at the end of the month, we’re going to find out more about the proposed extension of the OPEC-led plan to cut production, trim the global supply and stabilize prices.

The new deal should also provide support. Prices could move higher if the cartel and its allies talk about a further tightening to bring the market back into balance.

We’re likely to continue to see heightened volatility which is very common when speculators are present.

From a technical perspective, bullish July WTI crude oil futures traders are going to try to build a support base between $55.32 and $52.70. A sustained move over $55.32 will indicate the buying is getting stronger.

The major support base for August Brent crude oil futures is $62.93 to $60.32.

If the fundamentals cooperate then the reversal chart pattern could lead to a 2 to 3 week counter-trend rally.

Read more: https://www.fxempire.com/forecasts/arti ... ort-579230

[dan_s]

Russia Calls The Shots In A Fractured OPEC
By Irina Slav for OilPrice.com - Jun 09, 2019, 2:00 PM CDT

Read: https://oilprice.com/Geopolitics/Intern ... -OPEC.html

At the top of the page, note that Louisiana Light Sweet (LLS) oil is currently trading at $60+/bbl, which is more than a $6/bbl premium to WTI. Several of our model portfolio companies (CRZO, MTDR, ESTE and LONE) sell their Eagle Ford oil under marketing agreements tied to LLS. 100% of Lonestar Resources (LONE) crude oil is sold at LLS prices and their hedges are at WTI. So, they get the premium AND will get cash settlements on their oil hedges.