Crude oil prices are under pressure again as global growth fears seem to outweigh oil production cutbacks. Weak industrial profits in China and the International Monetary potentially lowering its growth forecast.
http://admin.futuresmag.com/admin/structure/nodequeueHedge funds are not listening to crazy bearish crude oil price predictions like Goldman's $20 a barrel call and instead are amassing its biggest net long position since last April. Oil fund managers are not betting on $20 a barrel oil this week because they increased their net-long position by 16,855 contracts to 132,857 futures and options in the week ending Sept. 8, according to the CFTC commitment of traders report.
Crude oil prices continue to feel the heat from a rise in U.S. rig counts and seasonal weakness, but is finding some support near the yearly lows. Oil sank after Baker Hughes said the U.S. oil rig increased by 6 to 670.
Drivers around the world are rejoicing as oil extends its recent drop today. After pausing just above the $50.00 level for the early part of this week, West Texas Intermediate crude oil broke down to a new 3-month low on the back of a surprise build in oil inventories yesterday.
Black gold is doing better that yellow gold as gold hits a 5-year low overnight, but oil stays solidly above $50 a barrel. Prices failed to take out $50 a barrel after U.S. rig counts resumed their downward trend. The U.S. oil-rig count for oil fell by 7 to 638, according to Baker Hughes.
For the past five weeks we have seen WTI crude supplies show less than expected builds and even draws in supplies. We can start to look for some evidence of increased production in the next few inventory meetings.