New York (HedgeCo.net) – Oil was mired in a bearish trend in the second half of 2014 that saw the price of West Texas Intermediate Crude fall in 20 of the final 26 weeks of the year. During the fall, the price fell from over $105 per barrel to under $50 a barrel in early 2015.

Oil did bounce back a little from mid-March through mid-May, but then it moved sideways for eight weeks and has recently turned slightly lower. Despite the fall over the last year, Beau Taylor, manager of the Taylor Woods Capital Management hedge fund, thinks the price could fall even further.

Taylor’s foundation for the bearish stance is based on the record inventory supply and stated at an investor conference that “the next six to 18 months would frustrate anyone betting on an oil price recovery”, adding that he had a bearish position on futures of U.S. West Texas Intermediate crude (WTI). Asked by a CBNC interviewer what the bottom was, he replied: “It’s hard to say, but we could see a very quick and erratic move lower to $30 a barrel.”

Rick Pendergraft
Research Analyst
HedgeCoVest