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Crude Tumbles and Finally Consumers See Relief at the Pump
Posted On 08 Dec 2014
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Oil prices continue to move lower in the wake of robust supplies from the United States. Even prices as the pump are starting to decline. The U.S. average price for regular gasoline was $2.76 per gallon as of December 1, 2014, down four cents from the previous week and 51 cents lower than the same time last year. Inventories remain high and products continue to build stocks.
U.S. commercial crude oil inventories decreased by 3.7 million barrels from the previous week. At 379.3 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year. Total motor gasoline inventories increased by 2.1 million barrels last week, but are well below the lower limit of the average range. Distillate fuel inventories increased by 3.0 million barrels last week but are near the lower limit of the average range for this time of year.
On the demand front, total products demand over the last four-week period averaged about 20.0 million barrels per day, down by 0.6% from the same period last year. Over the last four weeks, gasoline demand averaged over 9.2 million barrels per day, up by 3.2% from the same period last year. Distillate fuel demand averaged about 3.9 million barrels per day over the last four weeks, down by 1.5% from the same period last year.
The technical outlook for oil prices remains negative. Support is seen near $63 on a WTI basis. Resistance is seen near the 10-day moving average at $68.30. Momentum is negative as the MACD (moving average convergence divergence) generated a sell signal in late November. Oil prices are oversold. The RSI (relative strength index) is printing a reading of 25, which is below the oversold trigger level of 30. The commodity channel index is also oversold, printing a reading of -142, which is below the -100 trigger level and could foreshadow a correction.
The post Crude Tumbles and Finally Consumers See Relief at the Pump appeared first on Forex Circles.
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