Posted on 02/03/2016 2:39:21 PM PST by bananaman22
Last week West Texas Intermediate rallied 4.62 percent and was up for the second week in a row. It is important to note that the price trend is still clearly negative. Recent history suggests that WTI might form a consolidation band between $30-$40 (spending the most time between $30-$35) for 3-5 months before dropping again.
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Oil markets partially rose on the rumor of Russia and OPEC meeting to cut production, but the quickly-downplayed rumor wasn’t enough to lift WTI above a $34 close last Friday afternoon. In the presence of sluggish demand and a persisting supply glut, global oil markets are likely to face continuous downward price pressure from decreased demand and additional supply coming from two countries: Japan and Iran.
(Excerpt) Read more at oilprice.com ...
Hello, the dollar. Oil plunged Monday and Tuesday. today the dollar fell, so oil rose.
This same rumor occurred last week just as oil (/CL) broke below 30. The Russians denied it then, as I assume they will this time. Oil could go a lot lower, letting tptb buy up the Shale companies for pennies on the dollar.
What a great conservation measure.
Make the extraction of oil so unprofitable that no entrepreneur will attempt to even produce oil.
Something like the course of action that Mexico took decades ago.
Nationalizing the oil production and refining industries only assures that sometime down the road, the quality and quantity of the fuel produced from petroleum is so unreliable that not much of anything shall ever be done on the order of extending and building up the economy.
This country was in better shape in 1934, at the first cusp of the Great Depression I. And nobody will own up to the fact this is Great Depression II.
Very informative details about how Japan is lessening its consumption of oil.
Despite all these factors, I think that oil will rise significantly this year. There is nothing more volatile than commodities markets ... Anyway, that’s my view.
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