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Afternoon Note

Crude Awakening

By Charles Payne, CEO & Principal Analyst
5/10/2017 1:27 PM
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Maybe it’s too early to tell, but crude found support around $46.00 this week, and today, it is getting a boost from positive government news on inventories. Still, the XLE is down 10% this year, and many names in the sector have fared worse. I still see an oil rally that eclipse $55.00 on the upside this year.


So the market, while still meandering, lifted off earlier low points in part to the latest report on petroleum inventories from the US Energy Information Administration. A sharp decline in crude inventory levels, reflecting a sharp decrease in imports, helped crude inventory decrease by 5,200,000 barrels.

Petroleum Inventories




-5.2 million

-1.8 million





-1.6 million

-1.0 million

Of course, the nation is still awash in crude to the tune of 522,500,000 barrels, and domestic production has surged.

Still, I like a number of crude oil ideas including:

Overall, I feel good about this market, which has had several opportunities for profitable positions to be cashed out; it hasn’t happened, and that’s a buy signal, or at the very least, a hold signal.


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