The bearishness in oil continues as we duck below the support at 88.50
Brent crude daily 10 10 2014
Looking out to the weekly chart there’s a sizable gap down to the low 80’s if this level breaks
Brent crude weekly 10 10 2014
When oil blows it blows big and there’s plenty of scope to see some big falls. When growth was falling over the crisis oil fell to under $40. Where not in that much of a better situation today and with the shale revolution picking up around the globe supply is only going to increase.
As mentioned earlier with the OPEC report, production cuts may limit the moves but it’s hard to see them stopping the long term outlook for supply and prices.
