Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.

On Wednesday, crude oil moved lower once again after report, which showed that OPEC’s oil production climbed to 33.39 million barrels per day in the previous month. Additionally, the organization increased its forecast for 2017 non-OPEC supply growth. In these circumstances, light crude tested the barrier of $50. Will it manage to hold oil bears in the coming days?

Today’s alert is going to be short, because crude oil didn’t do anything new that would change not only the short-term, but even a very short-term outlook. Yesterday, the commodity moved to an intraday low of $49.89, but despite this drop, oil bulls managed to push the price higher in the following hours and light crude closed the day above the barrier of $50. Nevertheless, the CCI generated a sell signal, giving oil bears an additional reason to act.

Therefore, if you haven’t had the chance to read about other disturbing factors, which could trigger further deterioration in the coming days, we encourage you to read our Monday’s alert and yesterday’s free article (Crude Oil – Gold and Crude Oil - General Stock Market Links) based on our monthly Oil Investment Update.

We will provide you with a bigger update once we see more interesting developments on the crude oil market. As always, we’ll keep you - our subscribers - informed should anything change.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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