Refineries Will Need More Oil to Keep Up With Gasoline Demand

 

Crude inventories showed a build for the 16th week in a row, yet the commodity spiked to almost $59. Luke Rahbari of Stutland Volatility Group tells TheStreet's Jill Malandrino part of the pop was due to the data not being as bad as expected, but also because rig counts are down and gasoline supplies are down to a 5-year low. Refineries will need more oil to meet the gasoline demand and geopolitical tensions in the Middle East are also adding to the bid in crude. Rahbari looks to crude trading ranges in even numbers. Now that $55 has been broken to the upside, the next stop is $60 and Rahbari thinks oil will stay above $55 for the rest of the summer.

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