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.
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.
Crude oil markets got a pop as they tried to look beyond this Greek debt debacle to the expectations that U.S. oil output will continue to fall and tropical Storm Bill in the Yucatan Peninsula may slow operations in refineries and oil platforms in the Gulf of Mexico.
Removing export restrictions would increase domestic production-—8 million barrels per day in April 2014—-because of increasing domestic crude oil prices. Estimates range from an additional 130,000 to 3.3 million barrels per day on average from 2015 through 2035.