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O’Hare: Crude oil’s declining demand

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September 11, 2014 commodities, commodities markets, commodities supply, commodities trading, commoditiies, commodity, commodity index, commodity investing, commodity market, commodity markets, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, crude, crude oil, crude oil prices, crude price, crude prices, crude spread, eia, energy information administration, oil, oil commodities, oil industry, oil market, oil price, oil prices, oil production, oil stocks, oil supplies, oil supply, oil trading, saxo, saxo bank, saxo bank saxo tv, saxo bank trading floor, saxo bank tradingfloor.com, saxo tv, saxo tv saxo bank, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, steve ohare first 4 trading, trade idea, trade view, traders tale, traders tale saxo tv, traders tale steve ohare, trading idea, tradingfloor.com, tradingfloor.com insights, tradingfloor.com saxo tv, us crude oil production, us oil production

Crude oil production levels are significantly increasing, yet the global demand for the commodity has fallen. This has created a bearish trend for crude oil prices according to Steve O’Hare from First 4 Trading.

After five consecutive days of negative price action, crude oil hit a 2½ year low on the continuation chart yesterday. The Energy Information Administration had reported that demand for crude oil and petroleum based products declined, creating further negative momentum.  The EIA also stated that oil supplies remain worldwide, with the United States reaching the highest levels of output in 28 years. The geo-political tensions that caused crude oil prices to spike earlier this year have subsided, which is why most analysts believe that this negative momentum is set to continue.  

Steve is looking to take advantage of this negative momentum by selling at USD 92.00. He is targeting a drop to USD 90.00 and USD 88.00. A stop can be placed at USD 93.00.

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