Global Hunter Securities
We believe West Texas Intermediate crude oil prices could oversell potentially into the lower $70 range before rebounding to the $80 area, where we expect prices to consolidate.
From a purely fundamental perspective, the over-production evidence is interesting, with total U.S. field production up by 12.4% year-over-year to 6.35 million barrels per day, against a declining consumption trend in the same period.
The Cushing hub bottleneck bonanza has pushed Cushing stocks higher by 25.6% year-over-year to 47.8 million barrels, but this has not really moved the total crude stocks number out of whack, in our opinion.
via Global Hunter Securities Sees Oil Falling to $70 Then Rising to $80 – Barrons.com.