WTIC West Texas Crude Oil Weekly Chart; Descending Triangle Breakdown at 66.66

We don't need no steenkin' oil. King Donnie promotes the 'drill, baby drill' philosophy, but if the demand for oil is waning, as America and elsewhere slide into recession, even faster due to tariff turmoil, oil companies do not want to drill. If you have a steady order backlog of 100 widgets at your company, you do not ramp production up to 300 widgets because they will sit on the shelf. That be stupid. Not in King Donnie's mind.

The economy is likely slipping into recession. It is about time considering the ongoing labor, housing, and manufacturing recessions that have been ongoing for over a year. In the past, this would be the kiss of death for the economy and a recession guaranteed but nowadays chips rule the roost and the last couple years the AI craze was orgy time. At the same time, the wealthy class and upper middle class sycophants that service the wealthy, accumulated vast wealth from the Fed's money printing and have supported the economy, preventing recession, with their spending. The top 10% of wealthy Americans account for one-half of the spending. It is the New Gilded Age.

The prior oil chart in March explained the descending triangle a bearish chart pattern. If it gives way to the downside, like now, with the ominous 66.66 baseline failing, doom and gloom are ahead. The vertical side of the descending triangle typically dictates how far down price will drop if/when the baseline is busted. Commodities are special since they move wildly and as can be seen from the chart, a drop equal to the vertical side will be a trip to zero which will not happen.

Keystone likes to take the first touch in, or second, when charts forecast a crazy result so that would be the middle vertical lines that are 28-33 points. Thus, taking 28-33 away from 67 is the 34 to 39 landing zone now that oil failed at the 66.66 baseline. That is a recession number. No one needs any steenkin' oil or gasoline since they are sitting at home unemployed and taking the boat out on the lake this weekend is out of the question. In fact Carlos and Latisha put a for sale sign on the boat. Franks and beans are for dinner.

The 66.66 took so long to break, and is so important, that a back kiss is needed for price to prove that it wants to collapse. There will likely be some chop ahead and price may recover for the back test, and at that time the bounce or die decision will occur. A continued downward move in oil means recession. Oil falls below 60 a barrel printing a 59-handle (red dot). This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Monday Morning, 4/7/25, at 7:41 AM EST: WTIC oil is 60.65 off the 58.95 LOD. 

Note Added Tuesday Evening, 4/8/25, at 7:20 PM EST: WTIC oil drops to 57.60 taking out the low from Monday.

Note Added Wednesday Morning, 4/9/25, at 3:35 AM EST: Oil drops to a 4-year low at 56.70 now at 58.23. Time to plan a road trip with cheaper gasoline on the way. Keystone drives gas-guzzling vehicles with V-8 engines, not glorified golf carts (EV's), but instead of worrying about miles per gallon, he is concerned about gallons per mile.

Note Added Wednesday Evening, 4/9/25: WTIC oil takes a ride to 55.12, then King Donnie balks with his trade and tariff war placing the drama on hold for 90 days, so oil catapults higher to 62.35. Brent oil loses the 60 level but if you blinked, you missed it; price is now at 65.69.