Oil bears are just not backing down, even if the price is inches away from its lowest level in 2008/09. During the financial crisis WTI price hit as low as $36.18/barrel in the spot market for immediate delivery and today it traded as low as $36.36/barrel for immediate delivery.

Looking from the price action, it is not hard to tell that WTI is not only encountering sellers at every rally, buyers seem to be just missing even at lowest in six years.

Oil market of 2008/09 was much different from what is now. During the financial crisis, there was no fundamental change in the market but shock, which initially led to heavy long booking, leading to short selling, which ended as market returned to fundamental.

But this time around, large supply excess in the market is likely to prevent recovery, unless demand takes over. Even if price halts decline at this area, any major gain back could take months, if not years.

It is more likely that crude price would head lower further from here. FED hike might push into new lows.

Next target areas 

Based on calculations, next target areas are coming around $35.3, $33.5, $32.9, $28.7.