Despite the talk by many that the historic drop in oil rig counts really did not matter because the existing wells would still continue to produce and production in the United States would not be impacted, at least one energy company says that is not the case.
If anyone was paying attention to the crude oil market yesterday, you might have noticed that the market is finding some stability. We tumbled and lost a $1, but finished with the Bulls and reversed to nearly fifty cents higher.
Commodity currencies have made something of a comeback this month buoyed by a recovery in oil prices, but further strong gains versus the U.S dollar are likely to be limited with the US interest rate cycle close to turning upwards.
Tuesday's trading was a prime example of the strong upside sentiment permeating in the crude oil complex. Genscape reported a huge build in Cushing, Okla., crude oil inventories and after a short lived round of selling the market recovered all its intraday losses and closed higher on the day.
Crude oil bears are getting even more bearish with some now calling for oil at $10 a barrel. Yet many of these exceedingly bearish calls are coming after many missed the majority of the downside move in the first place.