Crude Oil Price Alert

March 23, 2017

R^2 producer clients received recommendations to hedge oil at $54 - $57/Bbl during the four weeks preceding the timely ALERT below.


Sent: Wednesday, March 08, 2017 8:25 AM
Subject: Crude Oil Price Alert
Importance: High

Dear Client,


If the close on Friday is below $52.54, our trend indicator will turn to down.

Weakness in oil this  morning has crude prices below the Trend Pivot.  For the past month or so, the market has been able to recover from these price dips.  However, Sellers have been in control for two weeks.  That tells us the resolve of longs is eroding.  We strongly recommend that you review your plans for crude hedging and be prepared to respond as necessary should oil price continue to weaken.  For your convenience, we have attached Monday’s Logical Hedge to this email.  Please call if we can be of assistance.


Outcome: Spot oil prices fell from $53 to $47 during the next 5 days

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