In yet another hit for the energy complex, EIA just cut their global oil demand forecast to 95.19 million barrels a day this year (down from 95.22 million in December’s outlook). The energy agency also increased its forecast for global production to 95.93 million barrels a day (up from 95.79 million last month). This pressured WTI Crude back off a brief bounce and pushed it to a 20-handle at $29.97 for the first time since December 2003.
Despite a short-term bounce after Jeff Gundlach suggested today would be a short-term bottom in crude,
Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital and was prescient in his call for lower oil prices last year, said oil has hit a short-term bottom on Tuesday.
As oil prices per barrel flirt with the $30-mark, Gundlach told Reuters: "Fundamentals are lousy but the technicals call for a short term bottom today."
we reverted back lower after this:
- *CRUDE OIL PRICES COULD DECLINE FURTHER, EIA'S SIEMINSKI SAYS
As Nanex shows, all the sub-$30 stops were instantly flushed (or the HFTs removed all liquidty)
Carnage!