WTI crude oil is in the contract roll at the moment but both the June and July contracts followed the same path today, falling early in US trade and then rebounding strongly to finish up more than $2.
The volume is now in July with the June contract running off tomorrow. July was up $2.87 to $109.96 with about half the gain coming late. The low was $103.24 so that's a $6.72 bounce. It breaks a two-day decline and sets up Friday's trade near the pivotal $110 handle.
Despite a terrible risk environment, oil has a chance to finish higher for the fourth straight week.
I'm increasingly convinced that we're in a period of supply shock. The EIA has talked about Russian oil production falling by 3 million barrels per day and there's not enough oil anywhere to compensate for that. The US is currently adding an extra 1 mbpd via the SPR and large parts of China are shut down, yet the demand for crude is insatiable.
