Crude oil prices continue to consolidate, and trend lower weighed in by the escalation in U.S.- China trade tensions and fears that the global economy will continue to slowdown. Looking at rising oil production in the U.S. and with new pipelines coming on in the next few months this should also pressure prices. Watch the weekly inventory data as the 5-year average is 426 M/b in inventory against current levels of 433 M/b leaving a supply glut. I would expect prices to push back down to the contract lows of $50.50 if crude can break critical support at $53.75.

Phillip Streible

Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.