WTI Crude Oil (current price: 39.75)
Oil fell back below the all-important $40 level after losing more than 4% yesterday. U.S. Crude Oil Inventories rose by 9.4 million barrels, much more than expected, as there is no end in sight for the damaging oversupply in the market. The commodity still managed to rally 50% from its lows around $28 in February, but the current levels are still very low for a lot of producer companies and countries as well. Oil might be headed even lower today, as it broke the advancing short-term trend yesterday.
Our assessment: Oil looks vulnerable to a deeper correction below $40, following one of the strongest months ever in Black Gold. The 37-37.5 zone might even come into play next week.
