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Oil's Path To $60

Published 12/05/2016, 01:56 PM
Updated 07/09/2023, 06:31 AM

Crude oil continues to stair-step higher off of last week's OPEC upside pivot reversal from $44.82 to a new high at $52.42 so far.

Only a decline that breaks and sustains beneath $50 will begin to argue that the up-move is taking a breather on its way to $60.

1-Hour Crude Oil

Latest comments

The drop to $51ish this afternoon down from the 52s earlier today reeks of a step back down toward the 40's to me, rinse and repeat the same pattern cycling between the mid 40s and the low 50s we've been living like repetitive scenes from Groundhog Day for the past eight months. The reason? As prices rise north of $50, US frackers buy futures and step up production at lower than ever costs of production, short term. With Trumponomics and the resulting decreasing costs of production, coupled with increased US production longer term (all that federal landing starting to pumpi cheap oil in the next 1-2 years!) I'll bet you my house vs yours (I have a nice house) that we see WTI at $40 long before before $60.
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