Petroleum Prices Vulnerable
The crude oil market has entered a very important phase with OPEC plus production increases looming on the horizon and evidence of improving demand needed to hold prices near the $60.00 level in the May crude oil contract. However, the market could see support from news that Indian refiners have continued to reduce purchases from Saudi Arabia in their May commitments as that could re-channel some demand toward the US.
While both product markets finished up with heavy losses on Monday, and RBOB continues to outperform the other energy markets, the break below uptrend channel support undermines bullish sentiment into the second trading session of the week.
With a large chart damaging washout yesterday following last week’s storage inflow, warm US temperatures leave the bear camp with control. However, there is a below normal temperature area throughout the Midwest and stretching to the East Coast and that could “help” prices attempt to respect key support at $2.5060
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