The November low gives way
What a terrible month for oil. It's down more than 20% since the May 25 OPEC decision after another 3% decline today.
What's especially negative for oil is that three bullets were fired by the bulls today and they missed. 1) OPEC tried jawboning 2) The inventory report was slightly bullish 3) Technical support at the Nov low gave out.
We're starting to get into 'how low can it go?' territory.
The answer. There is some big support at $40 and just below but why not back below $30? There is more supply than the world needs and storage is full. Demand barely adjusts to lower prices so why not another trip to the 2016 lows?
