WTIC lost 4% overnight and hit its 4year low. It also exceeded and broke below the important 74-76 area of support.
We may see some support around 70-71 which is the downtrend support since 2011 high. Followed by a good bounce as the drop from 107 to 72 is not very healthy without a bounce. (-33%)
We can roughly say that Oil could be in Bear market and downtrend lines since 2011 is still intact.
72USD x 44.95 / 119.24 Liters = 27.14 pesos per liter
Assuming + 20% gross profit margin and expenses = 32.50 pesos per liter
We may see Diesel prices here in the Philippines to hit as low as 32.50 soon. (now at 35.10).
*Xmas rush + cheap oil prices = disastrous traffic here in Manila x.x
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