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Why Oil Price is Set to Continue to Rise

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Since April 4th, the inexorable rise of the Brent Crude oil price from just below $38 to just over $47, a rise of some 25%, has confounded the negative headlines that have proclaimed the oil industry’s demise at every opportunity.


The American Petroleum Institute’s latest report surprised the market with a draw of 1.1 million barrels on US crude inventories prompting an out of hours rally to a new high for the year, only to be contradicted by the official EIA report released mere hours later with a rise in the same measure of 2 million barrels. Normally, or at least in the new post-crash norm scenario of 2015 and the first quarter of 2016, the immediate drop reversing the day’s gains would have endured and even prompted a further drop on subsequent days. However, as another clear indication that the market is itching for a sustained and substantial recovery, bullish trading has driven the oil price back up to a new, higher high.


http://houstonenergyinsider.com/?p=5361


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