Once again the death of Chinese oil demand has been greatly exaggerated. One must wonder how tight the global oil markets might get if there is indeed a U.S.-China trade deal because already Chinese oil demand is shattering records.
Oil prices soared on Friday after OPEC, led by Saudi Arabia, engineered a 503,000 barrel per day production cut, bringing the total cut to 2.1 million barrels.
OPEC cuts tweets start coming. Oil prices are waiting on confirmation but if reports are right, the cartel, along with its favorite non-OPEC member Russia, is close to agreeing to an additional 500,000 barrels per day (bpd) production cut
Well OPEC day is here, and the eagerly awaited announcement about their intention on production going forward will be the driving force of the day. Signals are coming from Vienna and the market appears to believe that Saudi Arabia can convince OPEC.
We emphasize to our traders that sometimes you’re able to receive breaking trading news from Twitter tweets and worldwide news networks before the trading squawk boxes and financial news television report the story.
Crude oil prices have rebounded as OPEC and Russia appear to be agreeing on deeper cuts in production Prices were future supported by the latest DOE report showing that crude oil stocks drew greater than expected.
What selloff? Oil prices are coming back from the Black Friday massacre as, along with OPEC plus optimism, the American Petroleum Institute (API) gives the algorithms a reality check.
In my rant on the 5% sell-off in oil on black and blue Friday, I erroneously stated the massive sell-off was on light volume. Well actually, the volume was very high, higher than the recent average.
Oil prices collapsed in what can be described as a post-Thanksgiving turkey shoot. Computer algorithms took suspect headlines and in turn picked-off bullish positions like turkey hunters in a petting zoo.
Going into Thanksgiving Day we have a lot to be thankful for on the energy front. Our nation’s economy has prospered with the shale revolution and we have to thank all of those who risked their capital to make that happen.
