Oil can’t fall forever in a straight line forever but that doesn’t mean it won’t continue falling.
Oil has caught a small bid in early US trading and has risen $1 to $83.78 after briefly falling below $80 last week. In the larger picture, I think we’ve see the highs in oil for a year or two but that doesn’t mean oil can’t bounce from here.
Then again, if US oil can’t bounce up to at least $87 from here, then a serious decline is coming.
What’s working against oil is that we remain in a negative seasonal period and the Atlantic hurricane season has been mum. The good news is that the seasonals begin to improve in December and if the upside gets going that could make $80 the bottom for 6-8 months.
WTI oil seasonals
