WTI Crude Oil Is Trading A Bit Higher In Asia
$USO, $OIL
WTI Crude Oil prices declined 1.89% Vs the USD for the 24 hr frame ending 23:00GMT, closing at 46.72 Tuesday.
Crude Oil prices were pressured after the IEA reported that the world Crude Oil market will remain oversupplied next year, despite a fall in production from non-OPEC producing countries.
In its monthly Crude Oil market report, the organisation cut its demand growth forecast for the next year by 2,000,000 BPD, compared to its prior assessment in September. It further stated that world Crude Oil consumption will rise by 1.8-M BPD in Y 2015, reaching a 5-year high, and by 1.2-M BPD in Y 2016.
In the Asian session, at GMT0300, WTI Crude Oil is trading at 46.86, or +0.3% higher from Tuesday’s close.
WTI Crude Oil expected to see 1st support at 46.06, a break there could push it to next support at 45.25.
WTI Crude Oil is expected to see 1st resistance at 48.05, and a rise through could take it to the next resistance level of 49.23.
Crude Oil is trading below its 20 Hr and 50 Hr MA’s.
Trend: South
Position Bearish
Crude Oil has fallen this year and US gasoline demand softened. WTI Crude Oil could fall to as low as 10 bbl as the Organization of Petroleum Exporting Countries (OPEC) engages in a “Price War” with rival producers, testing who will cut output 1st.
Iran is soon to release 53-M bbl to the market and will be producing up to 1.5-M BPD in 6 months or so.
Long term technical and fundamental outlook for both Brent and WTI Crude Oil is due South.
OPEC says it will cut production but is not doing that, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.
Have a terrific week.
HeffX-LTN
Paul Ebeling
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