SHORT for WTI in Short term.

28 เม.ย. 2020

Currently, there is too much uncertainties in Oil Industry.
Most of the giant Oil companies are in struggle right now. First quarter was closed with minus profit.
Small companies are on the edge of bankruptcy.
On the other hand there is no storage for the currently producing oil.
Saudi oil tankers are on the way to US.
If US gets Saudi Oil on board there is possibility for another collapse of Oil prices going sub-zero.
If US makes decision to start selling WTI in intercontinental market, the price will jump above Brent price.
Overall there is not enough fundamental reason for the price increase for the short term.

Eventually Oil prices will increase. It is all about supply and demand.
Many companies will shut down with current price and naturally the supply will drop and prices jump.
Removing lockdowns will force industries to consume Oil voraciously.
I am expecting hyperinflation for USD soon. This will affect Gold and Oil prices to jump to new historical highs.
I think in long term Oil price will increase dramatically above 160 USD.

Based on technical and fundamental analysis I am not expecting prices to go above 16USD for this week.
There is still possibility for another price crash for very short period.

Please, trade at your own risk. I have less experience overall.