While the long-term outlook for oil prices remains bullish, don’t be surprised to see a near-term correction. After tumbling to a low of $33.98 a barrel on Feb. 12, crude oil more than doubled in price, soaring to $69.82 on the New York Mercantile Exchange (Nasdaq: CME) – before tumbling nearly 4% on Thursday on a worse-than-expected jobs report.

Indeed, Money Morning predicted precisely that kind of a run-up for crude oil, first in January and then again on April 16.

As a basis for those previous analyses of the oil market, we cited the declining value of the U.S. dollar, falling production, and the possibility that demand for oil would soar as the global economy emerges from the worst financial crisis since World War II. And those factors continue to suggest that the price of oil will rise over the long-term.

However, while we still believe the

In the energy market on Wednesday, crude for August delivery sank, closing at $68.67/barrel, down 57 cents. July reformulated gasoline lost 5 cents, to $1.843/gallon.

In its weekly inventory report, the Energy Information Administration said that crude stockpiles fell 3.8 million barrels in the week ended June 19. That was three times analysts’ expectations for a decline of only 1.2 million barrels.

Gasoline supplies went in the other direction, increasing by 3.9 million barrels last week, while distillates rose by 2.1 million barrels. Refineries were operating at 87.1% of capacity, up from 85.9% the previous week, and the highest level since early December.

While the supply data was “mixed,” said Tariq Zahir, managing member at Tyche Capital Advisors, “we do feel both the crude and gasoline markets could see a downward correction in the next few weeks as demand is looking weak.”

But since “crude-oil stocks went down as much as gasoline

Many investors are somewhat dazed and befuddled as they watch what used to be called “The Natural Resources Sector” bounce up and down as the summer season commences.  With the dollar up again, commodities including the precious metals and oil were off sharply yesterday. All in all, it was just a broadly negative day. Little was spared, including equities, which also took a serious hit.  Even perennial bull James Moore, of TheBullionDesk.com, was forced to write that, “Short-term the metal [gold] could extend lower as a result of the dollar.”  John Reade, of UBS in London, concurred, writing that, “We would not be surprised to see further short-term declines, especially in the absence of any material jewelry, physical-investment or ETF demand.”

How do you put a happy face on that? Easy, according to the folks at Casey Research. “However, the current correction is likely to prove beneficial longer-term with the

In the energy market on Wednesday, crude for July delivery declined, closing at $66.12/barrel, down $2.43. July reformulated gasoline fell 2.43 cents, to $1.9252/gallon.

In its weekly inventory report, the Energy Information Administration said that crude stocks rose 2.9 million barrels for the week ended May 29, surprising analysts, who had been expecting a falloff of 2 million barrels.

Gasoline supplies dropped by 200,000 barrels on the week, while distillates increased 1.6 million barrels. Refineries operated at 86.3% of capacity vs. 85.1% the previous week, marking the highest level since the first week of December.

“This was really a very bearish report across the board with that one exception of gasoline,” said James Williams of WTRG Economics.

“While there are some positive signs in the economy, there’s not enough to justify $70 crude,” said Adam Klopfenstein, of Lind-Waldock in Chicago. “The key is [Thursday]. If we can get another negative move, then you’ll

In the energy market on Thursday, crude for July delivery continued to climb, closing at $65.08/barrel, up $1.63. June reformulated gasoline rose 1.88 cents, to $1.9105/gallon.

In its weekly inventory report the Energy Information Administration said that crude stocks declined by 5.4 million barrels in the week ended May 22, wildly divergent from Platts’s expectations for an increase of 1.8 million barrels.

Gasoline supplies dropped by 600,000 barrels, while distillates rose 300,000. Refineries were operating at 85.1% of their operable capacity last week, up sharply from 81.8% in the prior week.

“In the coming weeks, I look for crude stocks to continue to decline as refiners ramp up for summer,” said James Williams, of WTRG Economics.

Meanwhile, at its meeting in Vienna, OPEC chose to leave production quotas unchanged, with Saudi Arabian Oil Minister Ali al-Naimi saying output targets were unchanged because “prices are good, the market is in good shape.” Oil

In the energy market on Wednesday, crude for June delivery slid lower, closing at $58.02/barrel, down 83 cents. June reformulated gasoline rose 2.09 cents, to $1.6888/gallon.

In its weekly inventory report, the Energy Information Administration said that crude stocks fell by 4.7 million barrels in the week ended May 8, surprising analysts who had expected a gain of more than 1 million barrels. The drop was largely due to weak imports, which averaged 8.7 million barrels per day, down 1.2 million barrels per day from the previous week

Gasoline supplies were down by 4.1 million barrels last week, again vs. expectations for a modest gain, and distillates increased by 1 million barrels. Refineries were operating at 80.4% of capacity, a sharp drop from 85.3% a week earlier. That’s the lowest level since last September.

The EIA said that demand remains weak. Total petroleum demand over the past four weeks averaged 18.2

In the energy market on Monday, crude for June delivery slipped, closing at $58.50/barrel, down 13 cents. June reformulated gasoline fell 2.53 cents, to $1.6802/gallon. With trading listless, there was little to say about the day’s action, though some blamed nervousness that inventories will continue to rise. Many believe crude is already overbought.

“It has been a long time since any economic data signaled a near-term rise in petroleum demand, and there isn’t any now,” said James Williams, of WTRG Economics. “It is difficult to see prices staying near the current level for more than a few weeks or months.”

But gasoline continues to rise and analysts believe the trend will continue as summer driving season unfolds. Average regular gas prices have jumped nearly 9% over the past two weeks, to $2.226 a gallon yesterday, according to the AAA.

That’s just 5 cents below the price of diesel, which gasoline is

In the energy market on Wednesday, crude for June delivery rose, closing at $50.97/barrel, up $1.05. May reformulated gasoline gained 4.68 cents, to $1.4463/gallon.

In its weekly inventory report the Energy Information Administration said that crude stockpiles increased 4.1 million barrels for the week ended April 24, much higher than expected, raising them to their highest level since September of 1990.

Gasoline supplies were off 4.7 million barrels vs. expectations for a slight increase, and distillates added 1.8 million barrels. Refineries were operating at 82.7% of capacity, compared with 83.4% a week earlier.

The refinery dropoff was reflected in gasoline production, which decreased to 8.8 million barrels a day from 9.1 million the previous week.

“While crude stocks were up the market is apparently reacting to … gasoline stocks,” said James Williams, of WTRG Economics. But he added that, “from a big picture view it is difficult to see prices going anywhere but

“In the energy market on Wednesday, crude for June delivery inched higher, closing at $48.85/barrel, up 30 cents. May reformulated gasoline fell 2.38 cents, to $1.3906/gallon.

In its weekly inventory report, the Energy Information Administration said that crude stocks rose 3.7 million barrels, about 25% more than expectations. They’re currently at the highest levels in nearly 19 years.

In addition, the EIA reported gasoline supplies rose by 800,000 barrels, while distillates were up 2.7 million barrels. Analysts had been predicting declines in both. Refineries were operating at 83.4% of capacity vs. 80.4% a week earlier.

The EIA also said that total demand for petroleum products in the past four weeks fell 6.5% from a year ago. Gasoline demand fell 0.4% while distillate consumption slumped 9.4%.

‘This [government] data is too bearish for the market to ignore. If this doesn’t chase the bulls back into the barn, there is little that will,’ said James …

In the energy market on Wednesday, crude for June delivery inched higher, closing at $48.85/barrel, up 30 cents. May reformulated gasoline fell 2.38 cents, to $1.3906/gallon.

In its weekly inventory report, the Energy Information Administration said that crude stocks rose 3.7 million barrels, about 25% more than expectations. They’re currently at the highest levels in nearly 19 years.

In addition, the EIA reported gasoline supplies rose by 800,000 barrels, while distillates were up 2.7 million barrels. Analysts had been predicting declines in both. Refineries were operating at 83.4% of capacity vs. 80.4% a week earlier.

The EIA also said that total demand for petroleum products in the past four weeks fell 6.5% from a year ago. Gasoline demand fell 0.4% while distillate consumption slumped 9.4%.

“This [government] data are too bearish for the market to ignore. If this doesn’t chase the bulls back into the barn, there is little that will,” said