The WTI crash to $42 seems inevitable

It seems that the US-Russia competition will continue to sink oil, and the influence of OPEC will remain in the story. Both countries continue to pump at record levels, completely disrupting the supply and demand balance. Something the OPEC countries wanted to achieve for years.

For the first time this month, the extraction of US shale oil jumped to over 8m bpd, and in addition, the country's energy administration announced that in January 2019, expects the value to rise by another 134 000bpd.

Meanwhile, Russia pumped nearly 11.42m. barrel per day, which marks an historic record.

Technically, the freefall seems to be not over soon. The price managed to move below the key for the upward trend of support, formed by 50% Fibonacci correction, 200SMA and horizontal support zone. Given the strong downward momentum, I expect the price to test the last defensive line of technical analysis - the zone between $ 41.50 and $ 45.50 a barrel.

Current profit opportunities are high risk and are reduced to shortening after each minor adjustment.

Source: CNBC

Read more:

• Oil fundamental and inertia can push prices to new highs
• Goldman Sachs: “Gold is a better hedge than oil in current market conditions”
• Golden years for Gold
• The end-of-year gold rally continues at full speed
• Gold goes over $ 1,500, big players with estimates for the next year