Stories are emerging regarding crude oil futures bottom-line price floor in this incredible decent from over $100 per barrel. One hedge-fund manager’s view is that crude oil prices have already “almost” bottomed out and that “some recovery” is likely in the second-half of this year when demand picks up.
Just this past summer, crude oil futures were trading over $100 per barrel – a price well above “break-even” operational costs for energy producers. If $40 (or less) a barrel were to be the renewed “normal” as it was pre-Persian Gulf War in 1991, there is concern US and Canadian oil production cannot be sustained due to the overall cost of production.
Laura Taylor, a senior commodities broker at RJO Futures in Chicago, shared her fundamental analysis insight regarding the current crude oil futures situation by stating, “Crude oil (futures) prices still have not found a floor.” Taylor added, “There should be ample trading opportunities this entire year when crude does bounce, and then tests its lows (which remain to be seen).”
The trend for crude oil futures is down with no bottom yet in sight. We could very well see continued crude oil future prices pressured into the seasonal low time period this time next month.
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.