Supply destruction takes time. People are being laid off. Yes, Iran is coming, so I believe this will add pressure on Canadian and American projects existing and potentially coming. Iranian oil is cheaper to extract. Saudis, Russia and Iran can take it as their oil is far cheaper costs wise. Fracking is being run on debt.
I hope it will spike before droping to give some chance. I think there has been overall large surplus in oil production including USA, but it was done in anticipation of economic growth which has not come. The crude is down so much not because of Saudis, but 1. Economy worldwide isi poor shape and getting worse = demand is not there 2. Too much oil on the markets now. So, supply destruction via price down trend. Weak hands will leave the game.
Waiting time now. Brent by the way has already retraced $4 against major trend. Gas has been giving me fits. i closed the whole freaking trade by mistake. this is what getting up at night can do. what a pain. now gonna wait.
Chikot posted: Waiting time now. Brent by the way has already retraced $4 against major trend. Gas has been giving me fits. i closed the whole freaking trade by mistake. this is what getting up at night can do. what a pain. now gonna wait.
Ouch, that's happened to me too a few times. Which is why I have a firm rule not to trade during the night.
Seems that people are following Kuwait's OPEC Governor Nawal al-Fezaia hint that the oil-rich nation is ready to cut production (ready to cooperate if the rest of the oil producing countries will too). Doubt this will have any real effect on the oil markets. As we've heard a lot of talk before (from counties like Iran, Venezuela, Nigeria), and little action. And people are jumping in on a short term rally.
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