Crude Oil Prices - March 29

[dan_s]

Oil prices continued to rebound for a second straight session, buoyed by bullish crude inventories data and continued output disruption in Libya.

For the week ending March 22, The EIA said that crude oil inventories rose by 0.867 million barrels compared to estimates of an increase of 1.357 million barrels.

Gasoline inventories dipped by 3.747 million against expectations for a drop of 1.886 million barrels while distillate stockpiles fell by 2.483 million barrels, compared to expectations of a 1.886 million decline.

Elsewhere, armed factions at the western Libyan oil fields of Sharara and Wafa continued to block production, reducing output by 252,000 barrels per day (bpd), about a third of Libya's production.

The IEA Oil Market Report and several other analysts' reports I get forecast that refiners will beginning drawing down crude oil storage in April. February & March is when most refiners do annual maintenance projects call "turnaround". Most of them are now finished and will begin ramping up gasoline production in April. Summer blend gasoline requires more crude oil than the winter blends. Plus, the American love affair with SUVs and large pickups continues.

[dan_s]

Technical analysis says oil could go to $75: https://www.investing.com/analysis/is-c ... -200171332

Raymond James says they are convinced WTI is going to $75/bbl by year-end. If you'd like to read their report, send me an e-mail: dmsteffens@comcast.net