Oil has found new life after reports showed that oil supply could actually fall. The Energy Information Administration destroyed that myth after it reported that U.S. crude supply fell by 5.6 million barrels.
While everyone thought the drama in the oil market would be coming from OPEC, it seems that it is coming from Ukraine that is moving markets. It seems that Russia is diverting some supply to try to add to the tensions.
The oil bulls that have controlled oil for the month of July are in trouble. With near record long positions in both Brent and WTI crude and chart formations that are looking ominous they need the Fed to justify their bullishness.
Against a backdrop of rising supply and a murky economic backdrop, RBOB gasoline rises up out of the ashes. Ok maybe not ashes but rising on refining and pipeline issues as we get ready to top off the tank for the upcoming kickoff to the summer driving season.
Natural gas is still flirting with $4.00 as hedge funds are starting to realize that a major bottom may have been formed. According to CFTC data the net long position held by money managers hit a three-year high.