Here we are tracking a retrace in Crude after expected supply cuts are fully baked into the market. Bulls are going overboard here, forgetting that we have demand shocks coming with the global slowdown. The impulsive leg down last year was caused from the supply side, there is very little that can be done here to get back to these levels again. Good luck...
The price is about to reach a key area of resistance to determine the trend in the very short term: between 58.80 and 59.70 a barrier has formed which is a watershed between a further climb of another 6 dollars towards the area between the $ 62/64 per barrel, or a retracement to the support at $ 52.20. The fundamental scenario that is taking shape is quite clear:...
Oil should continue its bull run higher after a short correction. Saudi's seem to be finally getting their act together, and with power consolidation, should be able to limit supply enough to continue this rebound in prices this year. Fed's higher interest rates should dampen the response from debt-laden shale producers. These should set up for long-term higher oil.
Looking at a recovery over the next year or so. Oil recovering and breaking out over 55. Higher interest rates will dampen the response from debt-laden shale producers. Saudi's consolidation of power should add more stability to their production. TVC:USOIL
First target price of 40p on flow rate results due any day now.
After US positive data, China possibly lowering demand and inventories with an Oil flood, the 50-55 range was broken, though these prices under 50 do not really benefit shale producers or OPEC (and therefore could not be 100% sustainable if demand doesn't decrease further), we could have a longer dip to $46 (watch weekly chart I will share) and then maybe a...
Canada is a mess for a number of reasons see HERE , chief of which is commodity driven. Look for a move above strong resistance at 1.3078 on a weaker than expected GDP report where 0.0% is consensus. Released at 8:30am today.
I haven't posted about crude in a few weeks because the fundamentals and technicals simply have told the same story over and over again. Bulls get bullish because A) they believe the global economic growth falacy or B) it's so oversold it must go higher. My charts did not change, and, yes, it has played out well technically to the downside. It is ever closer to...
I have this theory that the beginning of 2014 is deja vu of 2008. We have global disinflation, with deflationary threats in the EZ. This has propped up the dollar, causing commodity prices (particularly PMs and oil) to tank. In 2007, leading into 2008, the general beat on Wall Street was that equities wouldn't decline. "So bullish it hurts," as I seen on one CNBC...