Oil’s Higher, but is Hemmed in by US Crude’s Struggles to Exceed $70 By Investing.com – Investing.com

SectorOil & Gas

© Reuters.

By Barani Krishnan

Investing.com – The U.S. oil rally seems to be hitting a bit of a wall beyond $70 per barrel.

, the benchmark for U.S.

crude, reached another 2018 high on Thursday, rebounding from the previous session’s decline pressured by concerns over a weak summer start for gasoline demand. 

But despite an OPEC monthly prediction that global oil demand will accelerate in the second half of the year and burn through the pandemic-triggered supply glut accrued through last year, WTI’s daily gain and price peak were barely headline-worthy.

This suggested that crude bulls needed to find a new catalyst to keep the market’s current upward momentum alive, without descending into a near-term correction at least.

“We need to start showing some strong weekly draw numbers on gasoline soon, otherwise WTI is going to get weighed down, even if crude stocks keep falling,” said John Kilduff, founding partner at New York energy hedge fund Again Capital.

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