Tuesday’s Commentary On Crude Oil
$OIL, $USO
WTI Crude Oil fell Monday, as record high production in Russia last month and mixed economic data in China fueled worries on the impact of a long term supply glut on global energy markets.
Monday, Russia reported that production last month hit a post Soviet record of 10.78-M BPD, just above its daily September level of 10.74-M BPD.
Over the last several months, Russia has refused to cut output in an effort to defend its market share.
The front-month WTI Crude Oil contract fell for the 1st time in 4 days, losing -0.96%, the Brent Crude contract dropped -1.55%.
As I write this report WTI Crude Oil is trading on NYMEX at:
|
WTI Crude Oil (Nymex)
|
USD/bbl. | 46.15 | +0.01 | +0.02% |
Position: Bearish, Short 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.
Have a terrific week.
HeffX-LTN
Paul Ebelin
The post Tuesday’s Commentary On Crude Oil appeared first on Live Trading News.