Posted on 09/02/2015 9:28:45 AM PDT by bananaman22
Oil prices have posted their strongest rally in years, jumping an astounding 27 percent in the last three trading days of August.
While much of the recent price movement defies reason and is enormously magnified by speculative movements by traders to take and cover their bets on oil, still, there were a series of rumors, events, and fresh data that helped contribute to the spike.
For example, on August 31, the oil markets woke up to the news that Russian President Vladimir Putin will meet his counterpart from Venezuela to discuss “possible mutual steps” to stabilize oil prices. The meeting will take place in China on September 3. Venezuelan President Nicolas Maduro has already called for an emergency meeting of OPEC, a call that has fallen on deaf ears, at least in the most important country of Saudi Arabia.
It is still highly unlikely, but the one country that might be able to change the minds of Saudi oil officials is Russia. Again, even if Russia promised to cut back oil production to boost prices (which it has not shown a willingness to do), Saudi Arabia has little trust in Moscow to follow through on those promises. Similar understandings to cooperate in the past have fallen apart, making coordinated action unlikely.
(Excerpt) Read more at oilprice.com ...
Why? To prove they don’t need no steekin’ supply and demand?
Price of WTI is already back down below $44 from a high over $49 a couple days ago.
Yeah, you and your stinkin’ facts have ruined another perfectly good conspiracy thread.
Maybe people are just closing positions and they needed to buy back a lot of contracts?
We had about a day and a half of short covering, hence the spike up, but current supply/demand can't support $48 crude just now.
Also, it's almost always a good idea, in crude, to fade the current conspiracy theory (tip, just FYI)
Good trading to you!
Labor Day Weekend....last holiday for people to get out of town....do it every year....
This is cool. I think I would like to start fooling around with oil futures and suchlike. Im a pretty smart feller they say.
We should establish a price floor for oil, at a level high enough to make fracking and biofuels (and eventually other) alternatives competitive. If the price of oil falls below that level, impose an excise tax.
I am a no-new-taxes person, but on a net basis. I don't mind rearranging taxes to fit important policy objectives. Taking pricing power away from the world's bad actors is an important policy objective.
So let's have a flexible oil excise tax, and rebate the net amount. We would have a lovely fight over the rebate formula, but in the meantime we would liberate ourselves from blackmail by the bad guys.
The Saudis have a long history of dumping oil to shut down serious competitors, and then cutting production and raising prices again when the coast is clear. No more.
Lol. If you want to pay more for oil why don’t you do it, not impose it on everyone else. What you suggested is at best socislism.
Or we can sit and do nothing while the fracking boom peters out and the Saudis regain their pricing power.
But maybe I worry needlessly. The environmentalists will probably shut down fracking anyhow, especially if the dems win in 2016.
Why is it that gas prices go down but quarts of motor oil don’t appear to do anything but go up?
Keep in mind the amazing thing about math. If a stock or commodity falls say 50%; say oil from 60 to 30; it now needs 100% to get back to where it was. So while 27% sounds like a lot, oil has a long way to go. I wouldn’t read anything to daily changes in any stock or commodity, because, sadly for those of us who live on reason, investors act on emotion.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.