Oil Extends Rally as US Inventories Fall — Market Talk
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08:26 ET – US oil prices are rising for a fifth straight session as rebounding demand is starting to reduce US inventories that became bloated during the worst part of the coronavirus lockdowns. The WTI contract for July delivery, which became the front-month contract today, rises 2.2% to $33.19/bbl. “Oil prices remain strong after the spot contract expiration, a good sign that the rally may have long legs,” says Peter Cardillo at Spartan Capital. “The API data [released Tuesday] showed another weekly drop in crude stockpiles which we expect to be repeated in today’s DOE data [at 10:30 am ET].” Cardillo says WTI may begin a move toward the $35-$40 range.
