Oil Prices

dan_s · Post by **dan_s** » Tue Apr 08, 2014 12:12 pm

Crude oil demand normally dips in April & May and so does the price, but today it looks like WTI wants to test the upper range of a channel that has been in place for over 20 months. My take is that by June 1st we will have seen the low price of the year for crude oil.

Today the upper range of the channel is $103 and the base is $94. As long as WTI stays within this range the upward drifting trading channel is in place. This is a VERY STRONG technical pattern. It will take several closes below $94 before I worry about oil prices.

I get a lot of oil price forecasts. Some guy at Bloomberg thinks oil is dropping below $75 in a couple months and other "experts" think is going to $150 by year-end. No one knows for sure!

All I know is that as long as the global economy is growing, demand for crude oil is going up AND the cheap oil is gone.