Tactics and Analysis, June 21, 2017 – Crude Oil Decline Worsens

U.S Crude Oil continues to fuel a downward trend. Crude Oil Inventories data will come from the U.S today, but it is news about greater Natural Gas production in the States which is hurting the market. Also, Libya is producing more Crude Oil. U.S Crude Oil will remain volatile for traders and risk management is needed.

Speculative and Weak

U.S Crude Oil prices continue to show little capability of reversing upwards.

An important support level was broken yesterday and the 44.00 U.S Dollars a barrel price has become a reality. Early trading this morning also continues to show a significant amount of downside pressure.

Traders looking for reversals need to use their risk management wisely. The consolidated range of U.S Crude Oil has been broken and if the commodity continues to sink it could prove a decisive blow to the energy as a wealth making machine for some countries in the near term.

Natural Gas Production Concerns

U.S Crude Oil Inventories numbers will be released today. Significantly, the report may not have a major impact on current sentiment. Yes, U.S supplies appear to be strong, but that has been well known to oil traders for a long time.

The real news effecting the marketplace, appears to be reports there has been massive expansion of Natural Gas exploration and production in the States. It is no secret the current White House administration has welcomed greater energy production in the U.S to make it less dependent on outside sources. What has also happened because of the greater production is that the export market for energy has started to change. U.S Natural Gas is now being sent in greater numbers abroad to foreign buyers.

More Pressure Coming for Crude Oil

Also hurting Crude Oil early this week have been reports Libya is producing supply at levels not seen in four years.

A look at a long-term chart of U.S Crude shows the low values being tested right now, may have the ability to sink further – and test lows not seen since August of 2016. Traders participating in the oil market need to be attentive.

U.S Crude Oil has grown more volatile the past week as its price has grown more vulnerable. While reversals may approve attractive to some looking for upside movement, deep pockets and a strong stomach are a necessity for those looking to stand in front of this rather brutal decline.

In the short term, we believe U.S Crude Oil may be negative. In the mid-term and long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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