Oil futures finished sharply lower Wednesday, with the U.S. benchmark registering its sharpest daily slump in about 13 months as fears of flagging demand and renewed production from Libya overshadowed a report showing the biggest weekly drop in domestic crude supplies in nearly two years.
Oil futures traded lower Thursday ahead of a weekly update on U.S. crude supplies, as President Donald Trump demanded that the Organization of the Petroleum Exporting Countries move to counteract a rally that has prices near 3 ½-year highs.
Crude oil futures were steady in the European morning session Thursday but are on the way up analysts said, following the sharp drawdown in US crude oil stocks reported Wednesday, coupled with ongoing US-Iranian tensions, the Canadian supply outage and potential Venezuelan sanctions.
Natural gas futures in the July contract is currently trading unchanged at 2.92 as I have been recommending a bullish trade over the last couple of months from around the 2.83 level as I have now decided to move on and exit this trade and look at other markets with higher volatility at the present time.
U.S. benchmark oil futures logged their highest settlement in two weeks on Thursday, buoyed by a hefty weekly decline in U.S. crude supplies, though the rise was modest given a climb in last week's domestic production to a record level.
With the G7 meeting concluding and the world about to start reacting to what was said and what was heard, it is time to take a look at the Crude charts with our Advanced Fibonacci prime modeling system.