Crude Oil: The bottom?!

Crude oil prices jumped 11% after 2 days of rally after data showed a steep drop in the number of rigs drilling for oil in US. This is read as a sign that crude production may begin to decline.

From the monthly, weekly & daily composite charts, we can see that a bottom may be forming. If the crude oil price bottom in 2008-2009 can be a guide, we can expect prices of crude oil to see volatile trading for the next few weeks or even months before a recovery kicks in.

Based on technical consideration, O&G stocks could be a good bet for long-term investment.


Chart: WTIC's monthly, weekly & daily chart as at Feb 2, 2015 (Source: Investorshub)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, O&G stocks.