WTI Crude Oil Extended Friday’s Loses, But Up A Bit In Asia Tuesday
$USO, $OIL
WTI Crude Oil prices declined 0.45% Vs the USD for the 24 hr frame ending 23:00GMT, closing at 44.09, extending Friday’s losses, as disappointing trade data from China fuels fears of slowing demand from the world’s 2nd largest Crude Oil consumer.
In the Asian session, at GMT0400, USO is trading at 44.16, or 0.16% higher from Monday’s close.
WTI Crude Oil is expected to see 1st support at 43.49, a break there could push it to next support at 42.83.
WTI Crude Oil is expected to see 1st resistance at 44.97, a break there could drive it to next resistance at 45.79.
WTI Crude Oil is showing convergence with its 20 Hr MA and is trading below its 50 Hr MA
Overall, Bearish
Position: 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.
Stay tuned…
HeffX-LTN
Paul Ebeling
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