United States Oil Fund (USO)

[eFinanceMarkets]

Crude oil wraps up best winning streak since 2012

U.S. crude oil prices completed an eighth straight day of gains, +2.2% to $47.07/bbl and marking its longest winning streak in more than five years after data pointed to moderating U.S. output; Brent crude settled +1.9% to $49.69/bbl.

"It's all about market sentiment," says Commerzbank analyst Carsten Fritsch, citing a 100K bbl/day drop in U.S. output due to tropical storms and maintenance, as well as last week's decline in the U.S. rig count, temporary factors that for now outweigh June's sharp increase in OPEC oil production and the continued rise in Libyan and Nigerian production.

June OPEC output rose by 280K bbl/day to 32.72M - nearly a quarter of the 1.2M bbl/day - OPEC agreed to cut, according to a Reuters survey, despite the cartel's pledge to hold back production.

More than half the participants in CNBC's latest oil survey say OPEC has lost control of the market, though it is expected to continue trying to talk up the price; just over half also see the low $40s/bbl as a bottom, though 40% still see downside and 70% would not rule out a drop into the $30s.