Friday’s Commentary On WTI Crude Oil
$OIL, $USO
WTI Crude Oil futures fell Thursday extending losses from Wednesday session.
Energy traders are digesting a Bearish supply report on nationwide inventory levels from the last week of October.
Participants continue to react to Wednesday’s government report from the US Department of Energy when the Energy Information Administration (EIA) said US commercial WTI Crude Oil inventories increased by 2.847-M bbl for the week ending 30 October.
While the stockpile build narrowly exceeded analysts’ expectations for a gain of 2.787-M bbl, WTI Crude Oil futures still dove more than 3% on the day, as fears of global oversupply persist, and news of Iran’s Crude Oil is coming into the market later this year.
Position: Bearish, Short for the Long Term
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.
Stay tuned…
HeffX-LTN
Paul Ebeling
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