A rough week for Oil

With OPEC unable to agree on anything, WTIC oil was unable to hold the $40 threshold, settling -$1.30 (3.1%) @ $39.97. The short/mid outlook is bearish, but from a pure cyclical perspective, a move to the $42-45 zone into early 2016 would not exactly be a bold upside target.


WTIC, weekly2

WTIC, monthly2

Summary

*note the blue monthly candle. Until we see a green candle, oil/energy bulls are fighting underlying bearish price momentum.
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Suffice to say... as an organisation, OPEC appear extremely weak. Despite prices having collapsed from over $100 in summer 2014 to sub $40... the cartel are still not able to agree on restraining supply.

One thing is for sure, the US/world consumer are likely to benefit from low energy/fuel prices for the entirety of 2016.

.. by definition.. that is bullish for the broader economy.. and indeed... the market.

Goodnight from London
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*the weekend post will be on the world monthly indexes.