I expected oil to hold the range and rally like it normally does into July but last year and it looks like this year things are playing out a lot different and it doesn't matter how much people are traveling and how much oil is being used there is just too much oil being pumped as shown by this report which shows an increase in inventory after 9 weeks of declines.
Not able to hold $3.08, $2.98 or $2.95. The fact that even over the past few weeks when we saw draw downs in the inventory oil couldn't rally or on market up days oil didn't rally and then to see the market snap back over the last two days and oil just plummet there is something really wrong (too much oil and too much production).
UWTI could see $2.58 or lower in the near term.
If oil would have held above it's lows from the past couple days I would have called for oil to go to $65 with the peak driving season upon us but now it is seriously broken down lower and we might not see those levels above $60 until August.
Boo! Seriously everyone knows that the last week of June is your last chance to get in before the July run up. This will be north of $4 and everyone will be complaining about how they day traded this and got out at $3.40 and never had a chance to get back in. Buy this thing hand over fist for the next two weeks and be rich!!!