Oil Chart: First $64.81 Then Sub $20
Chris Maikisch | Feb 19, 2017 03:19PM ET
Lately, it seems like bearish stock pile builds can't knock the price oil down.
OPEC
In this alternate reality we’re living in, OPEC is NOT cheating. I have to admit, I didn’t see that coming. However with prices being propped up, we’re domestically producing almost 9M bpd again. The by-product is swelling inventories.
Will OPEC have to prolong their output cuts; or maybe even reduce further?
Many say this is the main reason for price still being in the $50’s given that we have had some massive builds as of late.
$64.81 First, Then Sub $20’s
Maybe traders believe OPEC will announce further cuts and price can continue to advance. We concur, however not for those reasons. We believe sentiment is bullish enough to take oil into the $60’s (Specifically $64.81) .
After that, our analysis shows a final descent into the sub $20 level. For us to revisit our oil count, price will have to exceed $66.87.
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