Oil Prices

dan_s · Post by **dan_s** » Fri Jul 11, 2014 6:03 pm

I put up a chart at our luncheon last week (it is slide #17 from my Gastar Luncheon presentation which you can download from the EPG home page) that shows the strong trading channel that WTI has been locked in for over two years. The top of the channel is now at $102/bbl. All that happened to day is that oil moved back into the upper half of the channel.

There is strong support for WTI at $99/bbl (the mid-point of the channel) and VERY STRONG support at $95/bbl.

You should not be concerned about the oil price unless we see several closes for WTI below $99. Then we might see a test of $95.

I am using $95/bbl in all of my forecast models.