BURLINGTON, Vt. (DTN) -- A bullish slate of weekly petroleum statistics and strong technical market indicators merged to generate a confluence of trade and noncommercial buying in New York Mercantile Exchange crude oil and oil product futures Wednesday.
The $2.08 rebound in June West Texas Intermediate crude oil futures above the pivotal $71 mark to $71.14 bbl at today's formal session close reshapes upside resistance that brings into play potential selling at $71.65 followed by strong resistance at $73.30, according to analyst Brian LaRose at ICAP Technical Analysis.
LaRose expects the 6.03cts surge in June ULSD futures to $2.2180 gallon at settlement to trigger a run to $2.2700 should market bulls drive the spot month contract thru $2.2340 near term resistance. June RBOB futures have clear sailing to $2.1830 before encountering formidable resistance at $2.2135 having posted a 5.59cts advance to $2.1673 gallon at settlement this afternoon.
Contributing significantly to the futures rally came at the hands of the U.S. Energy Information Administration and its data showing declines in U.S. crude oil and finished oil stockpiles.
EIA reported domestic crude oil stocks fell 2.2 million bbl with crude oil imports declining by 1.226 million bpd.
A 685,000 bpd surge in implied gasoline demand helped draw down commercial gasoline stockpiles by 2.2 million bbl, EIA reported, while supplies of middle distillate fuel oil grades posted a 3.8 million bbl decline during the week ended May 4.
G. Bud deGorgue can be reached at email@example.com
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