Brent crude oil (OIL) remains in bearish formation as the great commodity bubble continues to deflate. Despite a +3.3% bounce last week, we remain bearish on oil across all three of our durations: TRADE, TREND and TAIL. Our immediate-term TRADE risk range for oil is $97.18-104.09. What's interesting is how there are still hundreds of thousands of net long positions in the futures market that will ultimately need to be unwound. That will act as a catalyst for a sell off and helps drive our consumption thesis. Cheaper oil = cheaper gas = Americans consuming more and filling up at the pump.
