WTI crude oil prices could see major push in coming weeks. Crude oil prices revealed their prolong slash in three years after facing six straight weeks of declines. In addition to this, there could be more tear down this fall, according to one veteran oil watcher.
Tom Kloza, co-founder of the Oil Price Information Service said that a slump in crude oil to $50, or even a spike above $100 could not completely banish the volatility.
A move in the gravity of crude oil is not uncommon for commodity markets. Crude oil prices saw 77 percent hikes from the middle to end of 2008 period in which the financial crisis was vigorous. While, from mid-2015 to early 2016, prices slumped 56 percent.
Kloza said that West Texas Intermediate (WTI) crude oil’s first move could be higher in early July. The figures could see a year-to-date peak above $74 in coming weeks, a 25 percent rise over February’s below $60 prices.
He also said that major inventories at a major crude hub Cushing, Oklahoma, could send the WTI’s price above $70 over the next few weeks.
“For the next few weeks what you really have to watch for WTI are the Cushing inventories,” said Kloza. “They’re about 21 million barrels compared to numbers that are closer to 55 or 65 million barrels in the last couple of years, so you could have a squeeze between now and when the September WTI contract expires.”
However, during the period of rising gas prices, Trump told the Organization of Petroleum Exporting Countries to cut down oila prices.