Crude Oil Hits $29.04 – Possible Bottom!

On December 18th with WTI Crude Oil at $34.55 per barrel, NIA predicted that it would bottom in January between $29.04 and $30.15 per barrel. WTI Crude Oil is down this morning to $29.04 per barrel, which puts it at the low end of NIA’s bottom prediction range.With gold up this morning to $1,091.60 per oz, the Gold/WTI Crude Oil Ratio is now up to a new all-time high of 37.59.

Historically, WTI Crude Oil has become extremely undervalued anytime the Gold/WTI Crude Oil Ratio rises above 27. Since 1968, the Gold/WTI Crude Oil Ratio has peaked at multi-year highs of above 27 on six occasions. On average, over the following 12 months, WTI Crude Oil has experienced a USD price increase of 103.04%!