Friday’s Technical Analysis: WTI Crude Oil (USO)

Friday’s Technical Analysis: WTI Crude Oil (USO)

Crude Oil prices advanced 8.09% Vs the USD for the 24 hour period ending 23:00 GMT, closing at 42.50 for the biggest 1-day gainer in 6 yrs on a force majure disruption in Nigeria.

In the Asian session, at GMT 0300, WTI Crude Oil is trading at 42.91, or +0.96% higher from Thursday’s close.

WTI Crude Oil is expected to see 1st support at 40.36, a break there could push it to next support at 37.82.

WTI Crude Oil expected to see 1st resistance at 44.45, a break there could drive it to next resistance at 46.00.

WTI Crude Oil is trading above its 20 Hr and 50 Hr MAs.


Crude Oil has fallen this year even US gasoline demand expanded, stimulated by a growing economy and low prices. Total gasoline supplied to the US market rose to an 8-yr high of 9.7-M BPD last month, according to US Department of Energy data.

WTI Crude Oil could fall to as low as 10 bbl as the Organization of Petroleum Exporting Countries (OPEC) engages in a “Price War” with rival producers, testing who will cut output 1st. Iran is soon to release 55-M bbl to the market and will be producing up to 1.5-M BPD in 6 months or so. Outlook for Crude Oil is due South.

OPEC says it will cut production, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.

Stay tuned…


Paul Ebeling


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