We asked traders if crude has hit bottom

February 5, 2015 01:58 PM

Carl Larry @oiloutlooks

I did think that WTI hit a bottom at $43.58 on Jan. 29, but then I saw the dancing sharks on the Katy Perry Super Bowl halftime show and everything changed. Well OK, it was the refinery strike on Sunday that made the difference for me. The longer the strike drags out, the lower that U.S. crude prices can fall. I know the general thought here is it will be resolved by the time this goes to print, but if it isn't, well...

Now if we do get those silly Union workers (just look for the Union label) back in line, I do think that the oil bottom is in. So much for oil predictions from fine financial institutions that said $30 is ahead. They may have set the bar too far away just like they had our hopes up for $200 back a few years ago. Realistically though, we're probably looking up into a test of $70 somewhere down the road of 2015. The average is going to end up in the low-to-mid-$60 area, but for now it's always good to dream big. That's just oil folks; go big or go home.

Carl Larry is a director and business development consultant for oil and gas at Frost & Sullivan. He provides daily oil market guesstimates with a dose of pop culture.

Image credit: brickartisan

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