Crude Oil Daily Chart And The $42 Glut!

Crude Slides Into Bear Market as Oversupply Distress Deepens – Bloomberg

The majority of analysts are very bearish towards crude oil, as another oil glut has been declared. Oil has now had a 20% decline which the majority says has entered bear market territory. Since about late 1999 I count this to be the 4th glut, but all at different prices.

Fundamentally a world oil glut could still send oil crashing, but history does not confirm this. Right in the middle of a media declared oil glut, crude oil stopped going down, and then started to  soar. This is not rocket science as it is easy to look back in chart history to confirm it.  The thing is that fundamentals change so fast as world oil production can come to a grinding halt, due to terrorists and dictator controlled economic plans. Even a storm in the gulf will shut down rigs, when they send workers to safety.                          

 Oil Tanker Storage Hits a 2017 Record Despite OPEC’s Cuts – Bloomberg

The favorite trick is to send oil into storage in large oil tankers, and they float around waiting for a port to open. When prices drop like this, then the real consuming oil countries are buying while the traders are selling. 

Late yesterday, crude oil had bottomed again, and is making promising moves at this time. Of course, another wild rally and another wild drop can still happen, as the declining waves constantly overlap critical wave structures.  If a “C” wave bull market is still in the cards, then this “C” wave could be a better looking impulse wave, but I sure would not bet my life on it. 

The chance of oil still being in a “D” wave bullish phase is real, and until this market turns and shows us its true colors, oil is keeping us guessing. 

The Gold/Oil ratio has not shifted dramatically, and our present oil glut ratio is a bit under 29:1.  When this ratio compresses and we see a 14 or even a 10 to one ratio, then oil will become very expensive, and any bullish phase would soon implode.   

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