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.
Many questions for oil traders as we go into a Thanksgiving week that may see unusual activity as U.S. trading volume dries up. Oil prices are showing resilience, signaling a much better demand outlook for the global economy.
It’s all about the glut, no oil. It’s all about the glut. No oil, all about the glut, no oil. The oil market has been held back in recent months by concerns that slowing demand would somehow create an oil glut keeping oil prices low.
What is increasingly looking like a failure of the Saudi government to get foreign interest in the Saudi Aramco public offering is making one wonder if they will still have the same incentive to try and support oil prices.