WTI Crude Oil Trading Lower In Asian Session Tuesday

$USO, $OIL

WTI Crude Oil prices advanced 2.55% Vs the USD for the 24 hr frame ending 23:00GMT, closing at 41.87 bbl on speculation that geopolitical tensions in the Middle East could lead to potential Crude Oil supply disruptions, not so, as the gains in prices were limited by worries of a real global supply glut of 3-B bbls

In the Asian session, at GMT0400, WTI Crude Oil is trading at 41.73 on – 0.33% lower from Monday’s close.

WTI Crude Oil is expected to see 1st support at 40.44, a break there could push it to next support at 39.16.

WTI Crude Oil is expected to see 1st resistance at 42.63, a break there could drive it to next resistance at 43.54.

US Black Gold is trading above its 20 Hr and 50 Hr MA’s.

Outlook; 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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