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CNBC Senior Energy Correspondent Sharon Epperson shared her notes from the NYMEX Tuesday: _Despite the increasing consensus view that OPEC will boost oil supplies, the July contract for
Brent touched a high above $116 per barrel Tuesday. West Texas Intermediate futures are moving lower and held under $99. The $17 spread between the two was a record for the July contract.
CITI FUTURES PERSPECTIVE energy analyst Tim Evans said the spread is not justified on fundamentals, but shows there is money chasing momentum, more than value._ » Read More _Here are some
possible explanations from traders on the divergence:_ _LIFTING BRENT_ _Traders may be trying to steer market sentiment to discourage selling and keep upside open after bullish reports from
GOLDMAN SACHS and similar banks. _ _Big banks reiterated their view in notes Tuesday morning that global oil demand will be stronger in second half of 2011. As a result, Goldman sees OPEC
operating near full capacity by next year. _ _China's oil demand sees strong upside, boosting diesel demand as it uses diesel generators to make up for lost electric power generation in
preparation for power outages that are expected to occur this summer._ _PRESSURING WTI _ _The UNITED STATES OIL FUND LP oil ETF starts its monthly roll today, selling July contracts and
buying August contracts although August is under pressure as well._ _More U.S. oil supply with restart of TRANSCANADA’S Keystone pipeline after closure and return from other production
outages in Canada._ _Questions? Comments? Email us at [email protected]_