11 year lows for light crude oil

Light crude oil or WTI which trades in the United States has reached an 11 year low and touches the 34 Dollars per barrel zone. Since October of last year, oil made a pullback to the 50.00 level, but since then it has been falling with a well-defined downtrend. Due to the fact that the over-production of oil is still in place and demand does not want to rise, it is likely that oil will keep falling in the near future. On the daily chart of the February contract we can see that today after the price broke below the 35.00 level, the bearish momentum accelerated and reaches the 34.00 level. Oil may find some support around the 34.00 level, but if it continues falling it may reach the 33.00. Some analyst are even forecasting the price of oil to fall to 20 Dollars a barrel if the underlying conditions do not change.