#oil #cl1! – Oil saw a gap down tonight to the target area shown in my previous chart shared this morning, and for now is attempting to hold at the lower parallel channel line that I drew which was an anticipated support level based on recent price trend. Price opened at $32.87 which is a -20.37% decline from Friday’s closing price of $41.28.
Still very early in futures trading, but I’m expecting volatility in price while waiting for US traders to digest this move overnight and make their move tomorrow at market open before sharing another update. If Saudi Arabia is determined to flood the market with oil in attempt to put US shale oil out of business, we can probably expect them to continue beating down price this week with talk of more oil output on their end in the coming weeks.
Still very early in futures trading, but I’m expecting volatility in price while waiting for US traders to digest this move overnight and make their move tomorrow at market open before sharing another update. If Saudi Arabia is determined to flood the market with oil in attempt to put US shale oil out of business, we can probably expect them to continue beating down price this week with talk of more oil output on their end in the coming weeks.