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Published on 9 Jan 2017
The
WTI Crude Oil market broke down on Monday, showing signs of weakness
yet again. I believe if we can get below the $52 level, the market
should then drop to the $50 handle. This is a market that’s going to
have to deal with oversupply, as higher prices have US and Canadian
drillers getting aggressive with shale oil production, and other types
of petroleum fields. Even if OPEC it does stick to its production cuts,
the reality is that the only have so much as far as influence, and on
top of that you must worry whether there is going to be enough demand
for petroleum. Recent inventory numbers to come out of the United States
suggest otherwise. Because of this, I believe that rally should be
selling opportunities.
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