Pound the alarm! Will Oil fall at $40?

Technical and graphical analysis showed that after the clearing of the $80 support the next Brent’s would be at roughly $69. In spite of a bullish divergence mainly caused by very strong overselling, that divergence bent to OPEC’s decision not to cut its production. As a result, the free fall continued as the Brent and the WTI reached $67.90 and $64.10 respectively, thus at levels not seen since the peak of the Eurozone sovereign debt’s crisis in 2010. With prices cut in half in less than 6 months, a growing number of analysts are wondering about the fundamental reasons behind such a disruption. Is oil surplus caused by greater (too greater) production or is it an anticipation of a long-term sluggish trend for world economic growth? In the last instance, the confidence crisis and its impact on market indexes currently at new record highs could be brutal. Will $40 be the next support?