Author: David Cohen

Oil futures continued their rise today after the Saudis announced an unexpected
incremental production cut.

Oil prices reversed early losses and turned positive for the day after Saudi Arabia’s energy minister said the kingdom aims to provide additional voluntary cuts in an effort to support global markets.

The number of active oil and gas rigs fell by 34 to 374 – an all-time low for data going back 80 years.

Oil prices turned negative in afternoon trading after initially trading up more than 11% from the open. Saudi Arabia raised its official oil selling price, alleviating some pressure on global prices.

Oil snapped a five day win streak today despite crude inventories swelling less than forecasted. WTI has now soared over 50% in the last week and some of this selling could be attributed to investors locking in gains.

Oil surged again today on a five day win streak. Particularly gasoline demand seems to be improving as noted by a multiple companies over the last few days as well as increased traffic.

“Demand growth in China is good for the energy market right now, it is pretty much the only game in town” said Bob Yawger, director of energy futures at Mizuho.

Oil jumped today snapping a three week losing streak as OPEC production cuts are set to take effect today.

It appears for now that the US crude glut is not growing as quickly as many had feared. Still, prices remain down sharply year to date.