- U.S. crude oil futures settled slightly higher, up 0.4% to $44.93/bbl, but it was enough to extend its rally to a sixth straight session after a decline in weekly U.S. crude production temporarily eased concerns about deepening oversupply.
- "It does feel as if a wave of selling has ebbed for now," Credit Suisse (SIX:CSGN) analysts say, but add that the rebound in prices reflects technical buying rather than a change in fundamentals.
- U.S. crude production fell by 100K bbl/day to 9.3M bbl/day last week, the steepest weekly fall since last July, but many analysts believe the drop is temporary because of the effect of storm disruptions to activity in the Gulf of Mexico; others say the rally may be running out of steam, as U.S. futures rose as high as $45.45/bbl during today's trade but pared gains as investors took profits.
- Goldman Sachs (NYSE:GS) and Societe Generale (PA:SOGN) this week sharply cut their forecast on WTI and Brent crude prices, citing higher supplies from the U.S. as well as Libya and Nigeria.
- Even after the winning streak, WTI and Brent are down for the month by a still substantial 6.9% and 5.7%, respectively.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, DWT, ERX, SCO, OIH, BNO, DBO, ERY, DIG, UGA, DTO, BGR, USL, FENY, DUG, IYE, FIF, DNO, OLO, RYE, SZO, PXJ, FXN, OLEM, CRAK, DDG
- Now read: Energy Sector: Cheap For A Reason?
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