Crude Oil Closes at Ten-Month High as Market Seen Rebalancing

[Purveyor]

Source: Bloomberg

Crude closed at the highest level in more than 10 months in New York on signs the global glut is contracting more quickly than projected.
West Texas Intermediate oil rose 2.2 percent to $49.69 a barrel.

Investors are buying commodities on speculation the Federal Reserve will hold off from raising interest rates this month, which will weaken the dollar and bolster interest in raw materials priced in the currency. Eni SpA said 65,000 barrels a day of crude output was halted Friday after a militant attack in Nigeria.



"We’re still dealing with follow through from the jobs report Friday," said Bob Yawger, director of the futures division at Mizuho Securities USA in New York. "The dollar isn’t doing much today but we still don’t think it’s reached its bottom. Eni’s problems in Nigeria are adding to the upward pressure."

Oil has surged more than 80 percent from a 12-year low early this year on a combination of unexpected supply disruptions and a persistent decline in U.S. output, which is under pressure from the Organization of Petroleum Exporting Countries’ policy of producing without limits. OPEC balked at adopting a new output ceiling last week. Outgoing Secretary-General Abdalla El-Badri said that it’s difficult to find a target as Iranian supply rises and significant Libyan volumes are halted.

Read more: http://www.bloomberg.com/news/articles/2016-06-05/crude-near-49-as-u-s-oil-rigs-rise-for-second-time-this-year

[hobbit709]

1. Back in Feb. I got gas for $1.32. today it was $2.07. My income certainly didn't go up.

[Purveyor]

2. Cheapest we had around mid-michigan was 1.59. Today the price is 2.59.

[bucolic_frolic]

3. It's all manipulated

February: '800,000 to 1.2 million barrels per day glut'

oil stocks crashed

April: 'it was only 400,000, there was a measuring error'

So, as usual, the Big Boys on Wall Street shook common investors from their
shares so they could buy cheap

Now it's really moving upward with accidents and shutdowns

Crooked Wall Street

[TexasBushwhacker]

4. Speculation always raises the price

http://www.globalresearch.ca/perhaps-60-of-today-s-oil-price-is-pure-speculation/8878

"Perhaps 60% of today's oil price is pure speculation."

[IronLionZion]

5. Speculators have been playing everyone the whole time

I hope no one here has their retirement funds invested in too much oil and gas. It's going to be a bumpy ride for quite some time I think.