Crude Oil recap for 18.11.2015
Oil is as foretold hovering for several days now around 41.62 and looks to gain momentum for another bearish push lower. DOE reported yesterday a modest, but expected inventory build of 252k barrels which is the 8th week in a row. DOE also confirmed there is a significant barrel inventory cushing forming up at 1.494mm barrels. The total crude production fell a tiny amount after 3 weeks of rising. WTI jumped a little bit, but went down under $40 handle once again.
Given these events seems that price movement is getting even more bound to the inventory numbers. So as the cushing grows, the price will fall as there is a big oversupply. We are looking at a big crossover here with the U.S. inventory data and OPEC policy as it is normal for crude to be stashed up hard when the demand can't keep up with the supply (the oversupply from OPEC mostly) and the onshore U.S. Crude Oil industry (or whats left of it and keeps breathing in the midst of the Shell Industry).
Oil is going down for sure, sell on the tops and corrections, go with the downtrend.