Inside Futures: Crude Oil Wrap Up  (July crude oil made new high and new high was made for the year)

July Crude Oil made another new high for the move today (Wednesday, May 25th) trading to 49.75 and breaking out above the May 18th high of 49.56. This is also another new high for the year as Crude broke free of the ledge that formed as it consolidated around that prior high. This could lead to a test of the October 2015 high at 50.92. Problems persist on the supply side as Nigeria continues to have supply disruptions and it could continue for a while. The EIA Report came out today and it showed crude inventories declining by 4.22 million barrels, more than the 2.8 million barrel decline expected. It also had Cushing inventories declining by 649,000 barrels which is larger than the 400,000 barrel decline expected. The big surprise however was gasoline inventories. Gasoline was expected to drop by 1.5 million barrels and instead it rose by 2.04 million barrels. This resulted in Crude Oil dropping to the low of the day at 48.65 as traders were surprised by this build in gasoline supply.

Source: Inside Futures: Relevant trading-focused information authored by key players in the futures, options and forex industries

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