There is something good going on in the global economy and that is translating to higher demand and higher prices for oil. While short sighted and economically challenged people always think the lower price for energy the better, fail to grasp the realities of global trade and the real economics of production. With U.S. gas demand at a record and global demand on the rise, it reflects good economic times to come.

Crude oil prices are getting a look at terror premium as four Arab Gulf States, led by Saudi Arabia, cut diplomatic ties with Qatar as another terror attack takes place on the streets of London. Terror is becoming a top issue around the globe as ISIS took responsibility for the slaughter on London Bridge.

Indeed, supplies did continue to decline through the spring—following typical seasonal norms. Since the low in February, natural gas prices have rallied more than 20%. Kudos to all who sold the puts.

Oil Outlook

Oil edged higher on Wednesday as OPEC said it was committed to eroding a global surplus of crude, but increasing shale production in the United States and still-high global stocks threatened to pull prices lower.

Technical support is starting to break down for the first time in a long time.

Oil prices edged higher on Thursday after the International Energy Agency (IEA) said the market was nearing balance, while U.S. data showing higher production kept gains in check.

What happens in the next 24 hours is that Venezuela is going to come due on about $3B in debt payments.

Many crude oil analysts have done a disservice to the average American that is more impactful to gasoline prices than the supply of crude. Take a year ago; we were in an era of low prices for eternity and that oil might never trade above $40 a barrel again--and that was was wrong.