WTI Crude Oil Marks A 52 Wk Low
$USO, $OIL
The price of a barrel of Crude Oil marked 43.87 bbl in NYMEX electronic trading Friday, the bottom is not in sight. Crude Oil prices got no help from Friday’s report on NFPs, which many analysts and participants believe will lead to an interest rate hike as early as next month, though I am not one of them.
Demand from China and India is solid, but, in China’s economic growth has purposefully slowed will improve in a measured way. A Buck weighs on Crude Oilbecause it is priced in USD’s. As the USD strengthens, the price of Crude weakens.
Over the past 3 yrs, the S&P 500 index has gained 50%, and the price of a barrel of WTI Crude Oil has dropped by 50% +, all the decline coming in the past 1.5 yrs. Cure Oil lost more than 6% on the week, the biggest weekly decliner since March.
Having broke support at 44, the Q is when will WTI break the psych support at 40?
Monday the US Energy Information Agency (EIA) releases its monthly drilling productivity report and Tuesday the latest revision to the agency’s Short-Term Energy Outlook.
OPEC also releases its monthly report on the Crude Oil market Tuesday, and Wednesday the International Energy Agency (IEA) publishes its monthly Crude Oil market report.
Any one of these reports is unlikely to push Crude Oil below 40, if the EIA’s weekly petroleum status report puts up another small drop or any increase in Crude inventories, expect a break at 40.
Direction: South (Very Bearish below 44)
| HeffX-LTN Analysis for USO: | Overall | Short | Intermediate | Long |
| Bearish (-0.35) | Very Bearish (-0.51) | Bearish (-0.35) | Neutral (-0.18) |
| HeffX-LTN Analysis OIL: | Overall | Short | Intermediate | Long |
| Bearish (-0.38) | Very Bearish (-0.61) | Bearish (-0.33) | Neutral (-0.18) |
Have a terrific weekend.
HeffX-LTN
Paul Ebeling
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