Oil Forecast December 20, 2011, Technical Analysis

Light Sweet Crude

The CL market had a very quiet session on Monday as the markets took a breather in the energy sectors. The oil markets will continue to be pressured to the downside if the economic numbers out of China continue to show a slowdown in the economic over there, and the situation in the EU also certainly isn’t helping. The market will find a ton of support at $90, but the overall bias is down at this point. We are selling rallies as they appear at this point in time.

Brent

Brent markets have literally stalled over the last three sessions as the $102.50 level is showing signs of either support, or simple selling exhaustion. The market still looks very heavy, and we think the real support isn’t until we get to the $95 level below. With this in mind, we are selling rallies in this market as well.