WTI has recently experienced one of its biggest one-month declines in several years, having lost around eighteen percent since hitting a multi-year high of $76.90 last month. There has been a perfect storm for sellers, with factors on both the supply and demand side of the pricing equation putting downward pressure on crude. However, there are indications that things are about to turn and while that high is probably out of reach for now, the bounce back should be sharp and could be very profitable. (Click to enlarge) The supply side drivers of the drop have been twofold. First, U.S. shale production has been booming again as prices have climbed. As we found out all too well during the last bust, shale production is very price sensitive, and as WTI climbed into the $70s output also jumped rapidly. Now, though, with prices in the low $60s, it is only […]