Oil Market Action Continues To Suggest A Top
This looks like a market that’s running out of steam.
– Walter Zimmerman (subscription required), Technical Analyst, ICAP/United Energy
Some more interesting action in the oil market today.
The Energy Information Administration today announced an 8.8 million barrel decline in crude oil stocks – the largest since September 2004. Check out BeSpoke’s chart on crude oil inventories.
Generally, a decline in inventory is bullish for prices because it suggests tightening supply and demand.
But not today. After initially surging to $133, oil prices sold off and are currently trading around $127. That’s some pretty interesting action and suggestive of the top I first speculated on last Thursday (“Signs Of A Top In Oil”, Top Gun FP, Thursday May 22).