I think this oil decline is temporary. It is a market driven phenomenon, it is technical and again it has to do with the anticipation of a tighter Federal Reserve and a strong dollar. The dollar has strengthened but the Federal Reserve has not tightened and I do not believe it is going to tighten because I think the recovery is a mirage.
And as more people figure this out in 2015, and the dollar trade reverses, I think you are going to see a sharp reversal in oil as well.
Related stocks: Exxon Mobil (XOM), Marathon Oil (MRO), ConocoPhillips (COP), Schlumberger (SLB), Halliburton (HAL), Chevron (CVX), Diamond Offshore Drilling (DO)
Related exchange traded funds: Energy Select Sector SPDR ETF (XLE), United States Oil Fund LP ETF (USO)
Topics: WTI Crude, U.S. Dollar, technical analysis, market dynamics.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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