Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Peek Into Crude oil Future Through Futures

* November 19, 2016

Following futures positions of non-commercials are as of November 15, 2016.

Crude oil: Support at $43-plus, which goes back to January 2015, was tested again this week. In fact, spot West Texas Intermediate crude intra-day Monday penetrated that support before closing at $43.32/barrel. That long-legged doji/spinning top session was followed by a 5.7-percent rally on Tuesday. Wednesday’s rally attempt was rejected at support-turned-resistance $46-plus, which oil bulls need to conquer for continued momentum – ended the week right on that price point.

The EIA report out on Wednesday was not viewed positively in the oil pit. Stocks rose across the board.

Crude inventory rose by 5.3 million barrels to 490.3 million barrels – an 11-week high. Stocks have gone up by 22.2 million barrels in the past three weeks.

Gasoline stocks increased by 746,000 barrels to 221.7 million barrels, and distillate stocks by 310,000 barrels to 148.9 million barrels. In the prior week, gasoline stocks were the lowest since mid-December last year, and distillates the lowest since early December last year.

Crude imports also rose by 981,000 barrels per day to 8.4 million b/d.

Refinery utilization rose by 2.1 percentage points to 89.2 – a seven-week high.

Crude production fell by 11,000 b/d to 8.7 mb/d.

Technically, there is room for spot WTI to rally near term. Let us see if oil bulls can pull it off.

Currently net long 273.3k, up 30.4k



http://www.hedgopia.com/cot-peek-into-future-through-futures-70/

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