Analysts are already targeting $20 and even $10 as the next key levels. Oil corporations are losing $1.8-2B for every $10 drop in prices. This, of course, leads them to cut jobs. Low oil prices come with benefits, too. India, Egypt and Indonesia have been able to slash subsidies worth almost $500B in 2014. Airlines and car makers are getting a boost. And this is also positive for consumers, unless of course, falling prices lead to deflationary cycles.
As to us, traders and investors, we should be very cautious when trading Oil as times such as these are difficult and markets can be unpredictable.
Chart: USOil H1
Impressive low price levels!
ReplyDeleteIt's a huge drop, will be careful when trading oil.
ReplyDeleteThe trend is still bearish.
ReplyDeleteIt could be at a good turning point.
ReplyDeleteOil price could found the support below $30.
ReplyDeleteIt will have to reverse sooner or later.
ReplyDeleteYes it has to reverse.
ReplyDeleteAs always, very detailed analysis.
ReplyDelete