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 lower-lows that have followed the June 9th highs. I believe only sustained crude oil futures trading above $52/barrel can change the trend back up near-term.

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 CONDITION.