Oil moved into bear territory in July and today has fallen a further 3.2% on lower Chinese demand and no production cuts from OPEC. Also US crude supplies were almost 100 million barrels over the average 5 year seasonal average as we head out of the last of the summer driving season and into fall. Refiners will be re-tooling for the winter season, so expectations are for a further drop in the price of crude to perhaps in the $30’s!
West Texas Intermediate for Sept delivery fell $1.07 cents or 2.5% to settle at $42.23 a barrel on the New York Mercantile Exchange.
For the full article from bloomberg, click here.
My position: well unfortunately I have sold my HOD’s at about $48/barrel, to lock in some profits, but I’m still bearish on the price of crude for the remainder of the year.
Live life better!