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Published on 14 Dec 2016
The
WTI Crude Oil market fell on Wednesday as the Federal Reserve raised
interest rates. This of course put a lot of bullish pressure on the US
dollar, which in turn puts a lot of bearish pressure on the crude oil
markets. What I find interesting is that we not only filled the gap from
the open of the week, but we went below it. At this point, the market
is looking a little exhausted and I have to wonder whether or not the
OPEC and non-OPEC countries coming to a production cut agreement will
have longer-term lasting effects anyways. After all, the higher prices
will attract shell drillers in the United States and Canada, which of
course are not bound at all by OPEC’s demands. With this, I think were
in real danger of a breakdown.
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