Oil Plunge Has More To Go [Seadrill Ltd, Transocean LTD, Chevron Corporation, ConocoPhillips]

short-oil-etfMartin D. Weiss: Have you been shocked by the oil price plunge?

Most pundits have!

So have the big oil magnates in Saudi Arabia, Russia, Venezuela, Mexico, Malaysia, and every other country that was betting on stable oil prices.

But Money and Markets editors Larry Edelson and Mike Larson have hit the nail on the head.

Larry has been shouting from the rooftops with his warnings of sharply falling oil prices since at least November 11, 2013, when Brent crude was selling for just under $100 per barrel.

That was 13 months — and about $40 in oil-price declines — ago!

Plus, on Wednesday of last week, just when the pundits and the magnates were swearing oil couldn’t possibly fall a penny further, Larry was weighing in with this blaring headline …

“Oil Plunge Has More to Go”

Now, as you know, some economic soothsayers always like to throw in various versions of wiggle phrases to cover their you-know-whats. They hem. They haw. And they remind you of President Truman’s refrain:

“I wish I could find myself a one-armed economist,” he said. “Maybe then I’d have an adviser who could never begin every second sentence with … “but, then again, on the other hand …”

Admittedly, we’re guilty sometimes too. When we’re uncertain, we say so. We don’t stick our necks out just for the fun of it. But if it’s an area we know well and we have the evidence, we have no hesitation in bucking the crowd of analysts, no matter how smart they may be.

That’s certainly what Larry has done — not just in words (which might be subject to interpretation), but also in a bold chart (which is completely unambiguous).

This chart left no room for ifs, buts or butt-covering. It showed very clearly that the price of crude oil would …

1. Plunge through its first line of major support near the $65-per-barrel level (which it already has done) …

2. Fall still further below the $60-per-barrel level (which it has ALSO already done), and …

3. Continue falling to its next major support line, which, depending on the time frame, could be somewhere in the $50s — also quickly becoming a reality.

When did he first publish this chart? Last week while oil prices were already plunging? Last month, after OPEC virtually declared a price war on the fast-growing U.S. oil industry? No.

It was back on the date I just mentioned — November 11, 2013 — long before the pundits had a clue about any of these events.

Edelson: “More Losses Coming For Oil”

In his most recent missive, just this past Wednesday, Larry wrote:

“More losses are coming for oil. Oil is now hovering just above that first major support level [on his 11/11/13 chart above]. Once it cracks that, oil will plunge to as low as $40. That leg down to $40 could begin any moment, or perhaps after a short-term rally.

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