On April 11, a fresh STEO report comes out, so you should wait for the updated forecast for the oil market from an official source. Conclusions on this report will be published in the blog www.cofutrading.com. But at the moment the situation is as follows: OPEC reduces production, and the US increases it. But along with the growth in production, which is accompanied by an increase in the number of drilling rigs in the US, oil consumption is also increasing. Exports are also high. Despite of inreasing us oil stocks (which is quite normal for a given time of the year), the growth rate of reserves is low, it is lower than last year and below the average for 5 years of value. That in general is bullish (at least for me). Demand for gasoline is high, demand for distillate is also high, so refineries will continue to "consume" a sufficient amount of oil, absorbing the growth of supply. Judging by CFTC COT reports, as of March 28, funds reduced their extremely bullish position. I do not attach high importance to these reports, I can only say that the long lines have been dropped, so the way for entering new long positions is open. I continue to adhere to the neutral-bullish direction in the US oil market, but before the opening of new positions I will wait for a new STEO report from the EIA.
See EIA report charts at my facebook page:
See EIA report charts at my facebook page: