• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 13 mins The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 4 hours China Burns More Coal than the Rest of the World !
  • 52 mins Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 4 hours "Climate Migrants"
  • 29 mins CHK Trading @ 90 Cents
  • 6 hours New York State Taxpayers Lose 900 Million to Tesla
  • 3 hours Does Brazil Auction Flop Forbode the Outcome of the Saudi Aramco IPO ?
  • 3 hours China's Renewables Boom Hits the Wall
  • 22 hours Water, Trump, and Israel’s National Security
  • 11 hours Giant Windmills Wildly Unpopular
  • 24 hours The End For Deutsche Bank and the European Union?
Alt Text

The 10 Highest Paying Oil & Gas Jobs

Despite recent cost cuts and…

Alt Text

Oil Stuck In Limbo As Trade Talks Fail To Inspire

Trade war optimism sent oil…

Editorial Dept

Editorial Dept

More Info

Premium Content

An Obvious Oil Trade That Still Has Potential

Many traders tend to overcomplicate things. They believe that because financial markets and the relationships between them are inherently complex, only complex systems and analysis should be trusted, and the only idea worth considering is the obscure one. In reality though, successful trades are often found by ignoring all of the complexities and simply doing the obvious. Right now, for example, there are two contradictory forces in the global oil market that suggest an obvious trade, yet I’m sure many people are looking beyond that.

Those two forces are both on the supply side of the equation.

Globally, supply is tightening. The U.S. sanctions on Iran were reinforced this week when the White House essentially revoked the waivers that were granted when the policy was originally put in place. That will lead to reduced exports from Iran at a time when the OPEC plus group, aggressively led by Saudi Arabia, are still cutting their production.

In the U.S., on the other hand, as this week’s inventory numbers once again indicated, output is increasing. Crude inventories increased by 5.5 million barrels, even as refinery inputs jumped by over half a million barrels a day. It is always dangerous to read too much into one weekly data point, but this is a continuation of a trend and is only logical. As the OPEC group’s actions have forced the global price of crude higher, so it makes increasing sense for producers in the U.S. to step up output to take…



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play