Crude oil has been a volatile market as huge increases in domestic production due to a fracking revolution and the OPEC decision—led by Saudi Arabia—to not cut production last fall in the face of rapidly dropping prices led to a massive downward move.
Today, crude oil prices are testing key resistance as Saudi Arabia takes a victory lap ahead of the OPEC meeting and private Forecaster Genscape reports a substantial oil supply drop in Cushing, Okla. Meanwhile, India's imports of Iranian crude oil rose in May to their highest level since March 2014.
The price discovery remains well within the range that has been set during the past several weeks trading between $57 and $62. The market will most likely spend the balance of the week within this range, possibly testing the high and/or low boundaries as the street waits on Friday's OPEC meeting.
This prompted us to ask traders: Has crude oil entered a new bull market, or has the recent rally just been a correction in an oversold market? Where do you expect crude to move from here?