• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 48 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 48 mins Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 1 hour IMO2020 To scrub or not to scrub
  • 3 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? To get Jared (Frisch School 2.8 GPA) a Mideast win with peace deal ? China greatest threat next 50 years.
  • 8 hours Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 3 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 1 hour Crude oil?
  • 4 hours Greenpeace Blocks BP HQ
  • 2 hours Shale to be profitable in 2019!!!
  • 11 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 49 mins California's Oil Industry Collapses Despite Shale Boom
  • 14 hours Get First Access To The Oilprice App!
  • 3 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’

Oil May Be Crashing, But Don’t Panic Yet

I am not a big one for sticking to your guns. Consistency that borders on the intransigent may be a good and rare trait in a politician, but there is a reason that there are very few traders who think like that. It is because the ones who did have already gone broke. It is important to remember, though, that in every financial market everything looks most offered at the bottom, and most bid at the top. Oil certainly looks offered right now as we test the lows levels that date back to 2009 and it is hard to find a reason to stick to a bullish outlook, but despite that, this is one time when I am going to stick to my guns. In fact, if you’ll forgive the mixed metaphors, it may be time to double down.

I have been saying for a while now that once the $62 resistance held to the topside in WTI and we started to head downwards, a test of the lows looked almost inevitable. If I am honest, I fully expected it to stop short of the actual low, but that hasn’t been the case. Overnight and early Friday morning, WTI traded below $42, at levels that have not been seen since 2009. Now I know the oil supply situation has changed since then with shale wells going into production, but global demand has also increased.

To logically justify oil at these levels in the long term, from a logical perspective, you have to believe that the global outlook for oil demand is at least close to what it was then. I don’t. I did take a step closer to that belief this week when…




Oilprice - The No. 1 Source for Oil & Energy News