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.
The crude oil seems unstoppable.
ReplyDeleteIt reached 32.10 before it started retracing, but I doubt that's the end of the move to the downside.
ReplyDeleteWhile OPEC out of control so i agree with Victoria.
ReplyDeleteI think that the effect of the geopolitical tension will be short-term.
ReplyDeleteGood post thank you!
ReplyDeleteInteresting analysis.
ReplyDelete