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Oil Prices declare : Is The Oil Price Plunge A Turning Point?

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Related: Why It Isn’t Game Over For Canada’s Oil SandsThe other negative weighing on oil prices is the increase in U.S. crude oil production.
Turning PointAlthough yesterday’s price plunge may have been an over-reaction, it may also represent a turning point for prices to adjust downward.
In short, this would more than cancel the U.S. decline since oil prices collapsed in late 2014.
Source: EIA March 2017 STEO and Labyrinth Consulting Services, Inc.Over-Reaction or Turning Point?
Comparative inventory–the crucial price indicator-only moved up 2.4 mmb (Figure 3).

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Register HereCRUDE OIL TECHNICAL ANALYSIS – Crude Oil has found itself in familiar territory with stretched momentum.
The price of Crude Oil recently traded below the 200-DMA with RSI(5) registering a bearish extreme.
Specifically, the rising Oil price and technology gains in the sector have made shale production cheaper than ever allowing US firms to produce at lower price levels and remain profitable.
The US Rig count has been on a near straight incline since summer 2016 and shows firms eagerness to produce and squeeze out a profit as Oil price stability surfaced after multiple quarter-on-quarter price declines.
While such a breakdown would hurt, price holding above the November low could indicate a longer-term consolidation lasting much of the year.

Crude Oil Price Forecast: Oil Faces Familiar Test On Break of 200-DMA*/

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Global Rig Count Suggests An Oil Price Rally Is Near

But the weak background noise of global drilling activity is a distant alarm for shortfalls in future oil supply—all in the face of still-robust year-over-year consumption growth.
Related: How Much Further Can Oil Prices Fall?
Not very exciting and hard to make a case that current oil prices are enough to open corporate wallets, even after all the hoopla about declining service costs.
On Wednesday, the bearish din finally drowned out the bulls, shaking the market out of its fifty-to-fifty-five price trance.
(see Figure 3)(Click to enlarge)Yes, rig productivity has increased many-fold over the past couple of years, but that’s mostly a North American phenomenon.

Global Rig Count Suggests An Oil Price Rally Is Near*/

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