Oil took a beating yesterday even as the dollar fell. It is down .04% pre-market right now. Oil did manage to bounce off some support at the low 69 level. We now enter the heart of hurricane season and already there is a possible storm brewing in the Atlantic.
The first storm has a high potential to becoming a tropical depression. It it also traveling in a west-northwestard path. You can look where that takes this storm, it could head to the gulf. More on this storm should be known later, as NOAA will be flying into it for data.
There is also a second storm off the coast of Africa that just started and has a lot of warm water to travel.
With Oil sitting at support right now, its one safe to get long for a bounce off the support but there is also the potential for an added bonus of having a hurricane forming by the gulf coast.
To track these storms go here
NOAA.
DXO may be a decent play if the first storm gets stronger. I am holding some DXO. But make your own trades and don't buy DXO because I did.
