Crude's Upside Looks Limited
West Texas Intermediate (WTI) crude oil prices on the New York Mercantile Exchange have seen a modest recovery from last week's two-month low of $100.68 a barrel, basis the nearby May futures contract. Prices Tuesday notched a fresh two-week high. Short-covering, or the buying back of previously sold-short futures positions, has been the primary supportive factor for crude oil's rebound. Importantly, a six-week-old downtrend line remains in place on the daily bar chart, drawn from the March highs.
Nymex crude oil gained against its counterpart Brent crude Tuesday as a major pipeline that was carrying WTI from the Gulf of Mexico to Oklahoma will soon be reversed, so that oil flows from Oklahoma to the Gulf. Reports this week said the flowage reversal will occur sooner than expected, which allowed Nymex crude prices to gain on Brent....364 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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