Whilst US equity indexes saw very sig' net weekly declines, it was a similarly bearish week for WTIC Oil, with a severe net weekly decline of -$3.78 (8.5%) @ $40.74. Regardless of whether the $40 threshold is lost in the near term, the underlying issue of over-supply has not been remotely resolved.
*a notable second consecutive red candle on the weekly chart.
Despite prices collapsing since summer 2014 (ohh how high the $107s now seem!), supply remains too high.
Yes, there are aspects of weakness in the global economy, but I shall continue to strongly argue the problem is one of supply, NOT demand.
There has been very little capitulation within the Oil/gas sector. Until we see a few of the mid-size names disappear.. with supply eventually reducing... prices are going to remain under downward pressure.
Goodnight from London
*the weekend post will be on the US weekly indexes