Crude Oil gets a little help from OPEC to push back at this week's losses

Crude Oil tries to salvage Monday's decline by surging near 1%.

Markets are  turning bearish with projections that $40 price per barrel could be the new price for Oil under Trump’s presidency. 

The US Dollar Index rallies further with the Trump trade sweeping markets and US yields pushed higher. 

Crude Oil has found some support and a floor to bounce off on, just shy of 1% of intraday gains on Tuesday. The Organization of the Petroleum Exporting Countries (OPEC) report released on Tuesday spelled out the obvious element of oversupply, with OPEC revising down its global Oil demand forecast for a fourth time in a row. Analyst oil economist Phil Verleger calls for the possibility of prices falling to $40 per barrel once President-elect Donald Trump takes office due to expectations of additional support for shale and other Oil mining projects jointly with tariffs on China, which would translate into higher supply. 

The US Dollar Index (DXY), which tracks the performance of the Greenback against six other currencies, is extending Monday’s gains. The Trump trade is sending the Greenback surging against all major G20 trade currencies with no exceptions. Expectations that the Fed will still cut interest rates further this year, together with the announced stimulus packages from President-elect Donald Trump, offer a small Goldilocks scenario for the US Dollar (USD) and equities.