Crude Cuts Up Longs
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 the $42.13 longer-term trend line (purple dotted line).
OPEC... or Saudi Arabia, rather, will continue to put the big hurt on US shale plays. The EIA crude inventory report shown a surplus of 8.9 million barrels, following a increase of 10.1 million barrels the following month. The API data was even more bearish, suggesting an increase of over 12 million barrels.
US shale companies will continue to pump, even as rigs fall to multi-year lows. Even given the 120+ days of declining gas prices, demand is still not there.
Potential long accumulation could be interesting in low $42, perhaps lower. However, $80/90 barrel oil is not even going to be possible. $55/60 seems more realistic.
My charts did not change, and, yes, it has played out well technically to the downside. It is ever closer to the $42.13 longer-term trend line (purple dotted line).
OPEC... or Saudi Arabia, rather, will continue to put the big hurt on US shale plays. The EIA crude inventory report shown a surplus of 8.9 million barrels, following a increase of 10.1 million barrels the following month. The API data was even more bearish, suggesting an increase of over 12 million barrels.
US shale companies will continue to pump, even as rigs fall to multi-year lows. Even given the 120+ days of declining gas prices, demand is still not there.
Potential long accumulation could be interesting in low $42, perhaps lower. However, $80/90 barrel oil is not even going to be possible. $55/60 seems more realistic.
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