Sliding Crude Oil Cant Look to Jackson Hole For Price Support

Fundamental Crude Oil Forecast: Bearish

• Last week was rough for crude

• German data disappointed, inventories rose

• The coming week may be no worse, but its hard to see durable price gains ahead

Crude oil prices are likely to remain biased lower as investors fret likely end demand in a world economy beset with horrific uncertainties and slowing obviously across many key regions. Prices have been biased lower all year on these worries and their slide has accelerated since mid-July.

It shows little sign of abating and, really, why would it？

Last week brought plenty of grim news. Germany‘s economy was found to have contracted in this year’s second quarter raising the specter of technical recession in Europe‘s engine room. US bond yields also slid, telling their own doleful tale about investors’ take on likely growth ahead.

Germany Add to Gloom

The coming week will bring more inventory numbers from the US Department of Energy. However, the overall market focus is likely to be well beyond these and rather on global economic prospects, trade headlines and the Kansas City Federal Reserves annual meeting of central banking heavyweights at Jackson Hole.

It‘s very hard to see how the guest list there can be other than extremely cautious on the outlook even if they’re likely to put the best gloss they can on a discomfiting economic vista.

Resources for Traders