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$43.18/bbl and heading lower August 11, 2015

Posted by hslu in Economics, Oil.
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WTI lost 4% today and it appears that it Is heading lower. There is simply no positive news which can push the black gold higher.

OOEC is pumping more than its target. Other nations are holding production for fear of losing market shares. US shale producers have already sunked their capitals and productions from Bakken and Eagle Ford will plateau and fall slowly. Iran is eager to raise its production once the sanction is lifted.

On the demand side, the situation is equally dire for crude bulls. China Is trying to hold its GDP growth rate at 7%. EU, Japan, Great Britain, Canada and Australia are all suffering slow growth. As for the U.S., a strong U.S. dollar and low quality job creation keep its economy growing at sub-par level.

Yesterday, China surprised the world and lowered Renminbi by 2%. Its short term and long term  implications on every assets are still being analyzed by the financial industry all over the world.

So, what is the next level for WTI?

I can’t tell you because I don’t know.

If technical is your forte, watch the $42 level. If WTI can’t hold $42, we might see a 3 handle soon.

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