• 4 minutes Trump has changed into a World Leader
  • 7 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 8 minutes Indonesia Stands Up to China. Will Japan Help?
  • 10 minutes US Shale: Technology
  • 13 minutes Which emissions are worse?: Cows vs. Keystone Pipeline
  • 17 minutes Shale Oil Fiasco
  • 2 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 18 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 3 hours Phase One trade deal, for China it is all about technology war
  • 11 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Might be Time for NG Producers to Find New Career
  • 14 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 18 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 13 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 16 hours Wind Turbine Blades Not Recyclable
  • 16 hours Denmark gets 47% of its electricity from wind in 2019
  • 1 day Beijing Must Face Reality That Taiwan is Independent
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Follow The Smart Money To See Where Oil Goes

Rig

Crude oil is set to post a strong gain for the week, boosted by a last minute decision by OPEC on September 28 at an informal meeting in Algiers to limit output. The initial thrust higher by the December Crude Oil market was very powerful, leading some to believe the move had set off the start of a new bull market. That opinion was likely held by momentum traders and non-professional investors who tend to be attracted to monumental moves in a market without really knowing the internal structure of the rally.

I am in the group who share the opinion that the proposal to limit production is full of holes that need to be filled before this market develops a sustainable rally. I still believe the market is over-supplied and given the history of OPEC and its previous failed plans to curb production, I am still skeptical that any such agreement will be followed long enough to put a sizeable dent in the huge global supply.

However, I am smart enough to know that I have to let the moves play out and not to fight the short-term momentum or the long-term trend if one develops. I’m not against this market moving higher or lower. But if I start to buy aggressively, I want to make sure I have big money behind me because I’m not capable of moving the market myself. This means I need to find out as quickly as possible if the price surge on September 28 and the follow-through move on September 29 was triggered by new buying or aggressive short-covering. This is because…




Oilprice - The No. 1 Source for Oil & Energy News