Another downward leg for crude?

Nymex Light Crude is headed for another test of support at $45/barrel. Breach would signal a decline, with a medium-term target of $35/barrel*.

Nymex WTI Light Crude and Brent Sweet Crude

* Target calculation: 45 – ( 55 – 45 ) = 35

Saturation of available storage capacity (see Crude in Contango) is expected to force sellers into the market and drive prices lower.

One thought on “Another downward leg for crude?

  1. Vic Russo says:

    Boone Pickens has said that he can’t see a floor to WTI prices until the rig counts approach 500 total in the US. We are currently around 1000 rigs down from 1900 at the end of 2014. Seems like a drop to $30-35 is entirely possible on this basis.

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