Monday, June 25, 2012

A look at the Crude Oil Market

Back in July 2008, with Crude Oil trading at an all-time high of $147 a barrel, everyone was calling for "peak oil" and a move to $200. This happened to be the end of the Crude Oil Bull Market from 1998, and probably dating back decades and even centuries. Well, instead of oil soaring to $200, it collapsed 78% in one of the biggest commodity busts of all time. It bottomed in 2009 at $33 a barrel. Since then, Crude has more than tripled in a wave B bear market rally. Crude topped over a year ago, at just under $115 a barrel. Of course, this got everyone in the peak oil camp excited again. But, it was just a bear market rally that is now over. Crude retraced 71.6% of its 2008 decline. That is more than enough for a bear market rally. Crude Oil has now entered the next leg of its bear market, wave C down. Granted, it is oversold in the short-term and due for a bounce...but Crude's long term downtrend remains in force.

Crude Oil Futures

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