Crude oil is once again showing strength. So what’s behind this sudden demand for the black gold?
First of all, we have seen some positive economic numbers come out of Washington. Second, seasonal factors are keeping many oil products in high demand, especially gasoline. If fact, gas demand has increased to more than 9 million barrels a day, a number that we have not seen since last summer.
With fracking becoming increasingly widespread, we are seeing less in the way of imports, and demand for West Texas Intermediate crude oil has increased. We have seen two straight weeks of 10 million barrel draws, something I have rarely seen as a trader on this floor.
To a lesser extent, continuing tensions in the Middle East are helping to elevate the oil prices. And as we were reminded by Tropical Storm Chantal this week, we are in hurricane season, and that has to be on everyone’s radar.
So how would I look to trade this market? It’s simple:
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