After moving sideways for several trading sessions the crude oil complex made a turn to the downside yesterday and continues on the defensive so far this morning. Since the uptrend started in mid-March the spot WTI contract has increased by about $13 per barrel before stabilizing and then turning lower.
Crude oil prices broke hard after the Saudi-led coalition in Yemen ended its "Operation Decisive Storm" in favor of what they are calling "Operation Renewal of Hope" that will focus on trying to find a political solution to the threat from Yemen.
Peak crude oil is back--at least for now! U.S. oil futures soared after the Energy Information Administration (EIA) acknowledged that U.S. oil output will fall despite earlier predictions to the contrary, only to fall back after the American Petroleum Institute reported a 12.2 million barrel increase in crude supply.