Wednesday August 20, 2014
OIl in the Permian Basin is going for $71, and falling to the low 90s in Cushing Ok, the delivery point for the New York Mercantile Oil Contract.
Crude oil dropped over 2% yesterday. I have ben wondering for some time why oil prices are so hgih when the world is awash in oil production. Now that fact is coming to fore.
I have placed two expoenntila moving averages of 13 and 34 days in the graph. The 13 crossed over the 34 in July signalling a downturn for real in price. Teh clear next target is 91, if no lower.
This may potentiall be a big pothole on the road to the oil field boom in the Eagle Ford and the Permian Basin.