On CNBC’s “Futures Outlook,” Scott Nations said the fundamentals in crude oil are absolutely terrible. He sees no good news and said that even last week’s draw in supply could not prevent the decline in price.
On Thursday, we had a surprise build and that certainly is not going to help, said Nations.
He added that China is not importing crude oil and Saudis have said they are going to cut prices they expect to deliver in October. So absent of a really significant catalyst, it’s look out below, concluded Nations.
Jim Iuorio said on Tuesday he expects a bit of a bounce in crude oil. It happened, but it wasn’t very enthusiastic. He is now watching if oil is going to break Tuesday’s low of $36.13. If that happens, Iuorio believes oil’s first quick stop is $35, but it could be on its way to $30. If it trades above $38.50, all bets are off, said Iuorio. For now, he is bearish on crude oil.
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