Oil is down about .40 in European trading. This may be another fakeout move but I suspect that oil will stay below $78 this time. If oil is still below $78 at 9 am NY time then it is likely to grind lower to the next level of support ($75-76). Oil has traded very weakly ever since North American weather started warming up last week and looks like it is going to give up most of its weather induced gains in late December/early January.
It is easy to make a bear case right now with high inventories, warm weather and a strengthening dollar. Things will be much more bullish once we get past the spring shoulder season.
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