Oil Tumbles Below $70/Barrel
A: BREAKING NEWS ON CNN MONEY: Just felt the need to report on this as from a trading standpoint you are probably going to have a lot of profit taking and a new group of shorts as oil inventory grew more than expected yesterday!
I'm going to be bold and make a prediction that Oil corrects down to the low 60's in the coming month or so; perhaps even sooner. Inventory news is pretty big news and warrants a lot of selling after the huge runup in light sweet crude experienced in past week. On previous posts I said I expected oil to bull through 70, and it did to 75 or so for a while. It may be time for a correction.
Should Nigeria start exporting again and the UN/IAEA take a hard stance on Iran causing a policy change, expect oil to retrace to mid 50's or so where it will probably hang out until the next move becomes more clear.
All you homeowners should rejoice with every day oil goes down! Thats 1 step closer to convincing Bernanke to pause on future interest rate hikes! Although we still have 6 months or so of previous fed hikes to seap into the system.
Oil Drops Below $70
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