So much for a bounce at 55. Oil cut through a whole bunch of support and the technical damage is severe. Expect a lot of back and fill before this market recovers. If oil fails to bounce at 50, there is little in the way of support until 40. The United States of Arabia has become an oil producing machine and has thrown a wrench in the OPEC cartel.
Since the Saudi Arabia government tax revenue goes hand in hand with oil prices, Saudi officials are no doubt going to talk up the oil price over the next few months. Expect a lot of chatter about production cuts from OPEC and Russia officials.