Crude Oil Prices Continue to Slip as Investors Look For a Bottom

Presented by |

Crude oil opened down 1.7% on Monday as investors were rattled by more negative news from the Ukrainian front.  Although an apparent ceasefire was reached, fighting near two flashpoint cities in East Ukraine broke out less than 48 hours after the agreement.   The fighting has forced Western nations to threaten additional sanctions against Moscow.   Investors will continue to keep a close eye on the conflict as Russia is the second largest oil producer in the world.

Oil has dropped over 13% from its yearly high reached in late June of this year.  Disappointing Chinese and European data  stopped the recovery attempt Oil investors made last week and lower prices appear to be coming.  Poor Chinese factory output numbers showed that China, the number two consumer of oil in the world, may be entering a cyclical decline thus lightening demand.

Oil tends to follow a pattern of peaking in the middle of summer followed by a weak 2 – 4 months before continuing up.  While this drop may be cyclical in nature, economic and political concerns continue to keep investors on their toes.

We will continue to watch for a bottom in $OIL as it tries to hold near its 52 week low at 21.30.

DISCLAIMER:

“KeeneontheMarket.com” (“KOTM”) is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of KOTM are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.
 

IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any individual, group, or entity will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.