Oil Correction Stalls On Strong Dollar, Rising Rig Count

Friday, August 5, 2016

Oil briefly dropped below $40 per barrel this week but rebounded following the surprise drawdown in gasoline inventories, a robust decline of 3.3 million barrels. Oil traders were more than happy with that result, ignoring the 1.4 million barrel build in crude oil stocks. As a result, oil traded up 3 percent on Wednesday and posted an additional 2.5 percent gain on Thursday. Some of those gains could have been the result of speculators closing out short positions and pocketing profits, however. "With WTI testing $40 lately and without follow through selling, short positions are likely booking profits and we could see range bound prices after this," Chris Jarvis, analyst at Caprock Risk Management, told Reuters.

http://oilprice.com/Energy/Energy-General/Oil-Correction-Stalls-On-Strong-Dollar-Rising-Rig-Count.html