At the Dow Jones Indexes’ mid-year economic outlook, Phil Flynn, senior energy analyst for PFGBest Research, said the top was in for crude oil for the year. Flynn said the top mirrored the mid-summer top from last year and expects crude to test the January lows around $35 per barrel by year-end.
Flynn has highlighted some of the non-traditional supply and demand fundamentals that have affected oil in his analysis in recent years. He continued that theme, stating, “Oil has been a reflection of [the] economic crisis…people were using oil as a hedge against systemic risk.”
Flynn attributed the strong rally in crude during the first half of the year to the quantitative easing policy the Fed and now that there is “talk of an exit strategy, we are near a top.”
