Many oil companies had trimmed their budgets heading into 2015 to deal with lower oil prices. But the rebound in April and May to $60 per barrel from the mid-$40s suggested that the severe drop was merely temporary.
The reverse in the euro caused a reversal in oil and to be honest, it was due for a sell off. The technical picture is playing out as we expected with the bottom in December to the top near $97 and now a target of $91.
Rising gasoline prices and production cuts tied to a tropical storm churning through the Gulf of Mexico have some energy analysts predicting the U.S. will announce a release from its Strategic Petroleum Reserve.