Expert Believes We Will See $10 a Barrel Crude Oil Futures

Crude oil futures have resumed lower today as one expert consultant has published his belief oil is still heading down to the $10 level because of a world “awash in crude.” Crude oil futures are down $1.18 today currently trading at $48.70 per barrel at the New York Mercantile Exchange. This professional consultant feels recent gains since the February low isn’t justified with the outlook of crude oil that collapse the energy market in the first place – such as the wildfires near the oil sands region of Canada, cuts in output by politically unstable countries such as Nigeria & Venezuela, or even the hopes of American fracking efforts subsiding all played a part of this recent oil price surge. In the meantime, the Persian Gulf allies and the Saudi’s have been playing a futile game of bluffing with the world’s other major oil producers. “But the world continues to be awash in crude, and American frackers have replaced the Organization of Petroleum Exporting Countries as the world’s swing producers. The once-feared oil cartel is, to my mind, pretty much finished as an effective price enforcer,” said A .Gary Shilling, president of his namesake’s New Jersey-based consultation firm, sharing his fundamental assessment of the crude oil futures market. Shilling added, “Even OPEC’s leader, Saudi Arabia, is acknowledging the new reality by quashing recent attempts to freeze (crude oil) output, borrowing from banks and preparing to sell a stake in its Aramco oil company as it tries to find new sources of non-oil revenue.” The technical trend for crude oil futures has recently rolled over back “down” with lower-highs and...

World Demand Growth Forecast Makes Crude Oil Futures Retreat

Crude oil futures has made a hasty retreat from the psychological $38 per barrel level reached today and yesterday. Crude Oil futures are currently down $1.35 today trading at $36.55 per barrel at the New York Mercantile Exchange. Earlier today the US Energy Information Administration lowered its estimation of this year’s “world demand growth” forecast by 90,000 barrels – to now 1.15 million barrels per day. The monthly forecast for 2017 was also downgraded by 250,000 to 1.21 million barrels per day. Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental view of the crude oil futures market by stating, “The news came at a time when crude oil not only approached the $40 threshold, but stiff resistance is at the $36 & $37 area.” Levy adds, “Any hope for an extended crude oil (futures) rally has now been but on the back burner following this official report.” The trend for crude oil futures just turned “up” early this month, but more information will need to be evaluated. Crude oil futures may see temporary seasonal demand, but these reports take that into consideration. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Can Food Prices Be Expected to Drop with Crude Oil Futures?

Crude oil prices are dropping back to pre-war levels and if you may recall, food prices have soared over the years with the primary blame being attributed to higher delivery costs…but now times are again a changing. Crude oil futures are down. 44 cents currently trading at $29.00 per barrel at the New York Mercantile Exchange. A United Nations Food & Agriculture Organization study took monthly data of oil and food prices and determined a higher ratio of food cost since the year 2000 than the prior decade which can only be because of increasing oil costs. Since 2014, however, there has been a disconnect as food prices have been outperforming the cost of oil, but at the same time allowing more food production. Laura Taylor, a senior market strategist at RJO Futures in Chicago, shared her fundamental view of the crude oil futures market by stating, “There was a lag in higher food costs when crude oil (futures) began its ascent over a decade ago. Now that crude oil prices are returning to pre-war levels, maybe food companies are compensating for their prior losses before food prices come back to more affordable levels.” Taylor added, “With increased food production (with lower energy costs), companies can be compensated earlier with more available product so there is a possibility of higher food costs not lasting that much longer.” Crude oil futures trend is down with no bottom yet in sight. The technical indicators used to measure strength in the crude oil market illustrate the high probability of lower prices ahead – a major plus for consumers. ALL COMMENTARY IS CONSIDERED...

Who Believes We Can See $20 Crude Oil Futures?

Crude oil futures’ spiral may continue lower to $20’ish per barrel due to a higher valued US Dollar, so says a prominent Wall Street brokerage analyst. Crude Oil futures are already up 34 cents today currently trading at $30.78 a barrel at the New York Mercantile Exchange. Most people don’t realize crude oil is somewhat leveraged to the US Dollar, but a combination of an oil glut and a strong dollar are indeed helping push crude oil prices lower. This particular analyst from an article I can across today believes crude oil can fall another 10%-25% if the US Dollar appreciates another 5% – ultimately bring oil prices down to $22.50-$27.00 per barrel from where it is recently. “Before the original Persian Gulf incident, crude oil traded between $10 to $32 per barrel on average and once conflict began with Desert Shield, oil spiked to $40,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his fundamental assessment of the crude oil futures market. Brady added, “Now that the major conflict in the Middle East is behind us, we’re seeing crude oil prices coming back to normal.” The trend for crude oil futures is down with no bottom yet in sight. A technical spike could come at any time for crude oil futures, but when it will start trading in a range is anybody’s guess. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN...

Crude Oil Futures Hastily Retreat on Profit Taking

Crude oil futures have given back most of yesterday’s gains, but losses may be limited due to disruptions in supply from Brazil and Libya. Crude oil futures are down $1.62 at this time currently trading at $46.28 per barrel at the New York Mercantile Exchange. There’s a strike happening with Brazil’s state-run oil producer causing a reportedly 25% disruption for the world’s ninth-biggest oil producing nation. In Libya, one of their oil export terminals is closing and both of these situations are helping to support crude oil prices today. Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his fundamental view of the crude oil futures market by stating, “Crude oil (futures) traders are most likely either taking temporary profits, or establishing new short positions after a five dollar rally.” Brady added, “With a strong US Dollar still prominent and persistent fragile economic data coming out of China, its hard to imagine crude oil (futures) prices rally much from here.” Crude oil futures trend is down, however range-bound for the last two months. Crude oil futures had found a recent low near $43 early last week from their recent $51 high early last month so these are the parameters for consumers and traders to watch. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Crude Oil Futures Back Below $50 on Supply

Crude oil futures traded below $50 per barrel today for the first time since the initial down-move In March took oil prices to the $44 dollar area. Crude oil futures are trading down $1.69 as of this writing currently at $49.14 per barrel at the New York Mercantile Exchange. The analysts reportedly were expecting a drop in supply of nearly TWO MILLION barrels, but the API reported a rise of 2.3M barrels here in the US as of last week – a significant spread. Another report from the Energy Information Administration may show a slightly less amount of crude oil stockpiles as of July 17th. “For a very brief amount of time it appears peak summer demand was reflected in the API & EIA estimates,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, regarding the fundamental assessment of the crude oil futures markets. Plotkin added, “With the yearly summer demand picture behind us, the crude oil market could very easily make new year to date lows.” The technical trend for crude oil is down with no bottom yet in sight. With crude oil below $50 per barrel, maybe us consumers can see gasoline prices reflected lower as well… ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...