After getting thwarted by the dollar, crude oil futures came roaring back on a mix of demand expectations and a slew of rumors. Traders had me look into rumors, like an early release of the American Petroleum Institue supply report, and talk that the Energy Information Administration was going to revise downward its crude oil inventories.
We said the break was coming in oil and it came with an accentuation point from the EIA. Surging supply and the lessening of the Fed’s influence on the market should force a test to the lower end of the old support near $88.
The government shuts down and the outlook for energy just got a little murky. While transportation is not directly impacted by the government shutdown, a prolonged stalemate could slow the economy and U.S. oil demand.