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.
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