Crude oil prices are still hovering around $53 a barrel, on the February futures contract, following the agreement by OPEC and non-OPEC producers to cut oil production. The expectation is that these cuts will reduce crude oil oversupply, which will support oil prices, but I don’t buy it.
Look, we’re talking about a group of countries who, geopolitically speaking, are normally at each other’s throats, and they are fierce competitors when it comes to oil production.
Even IF this deal holds up – and I’ll believe it when I see it – higher oil prices will wind up leading to a rise in crude oil production here in the U.S., and that will simply offset the impact of the OPEC cuts.
Already rig counts here in the U.S. are on the rise, so it’s just a matter of time before higher domestic output equalizes OPEC’s cut.
That’s exactly why my cycles and AI forecast charts are pointing decisively DOWN for oil prices into early 2017, and the breakdown could happen any day now. So I believe this is an excellent entry point to short oil.
Specifically, I recommend buying ProShares UltraShort Bloomberg Crude Oil, symbol SCO, to profit from oil’s next move lower.
Here’s what I recommend:
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For ALL Members: Using 5% of the funds you have allocated to this trading service, buy ProShares UltraShort Bloomberg Crude Oil, symbol SCO, at the market. Place a good-till-canceled protective sell stop at $58.73. |
Go ahead and get this order in ASAP and stay tuned.
Best wishes,
Larry
