• 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
  • 7 hours EU has already lost the Trump vs. EU Trade War
  • 1 day Science: Only correct if it fits the popular narrative
  • 19 hours Crazy Stories From Round The World
  • 1 day Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 20 hours Everything You Need To Know About Trump
  • 7 hours IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 5 mins Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 1 day Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 hours Water, Trump, and Israel’s National Security
  • 18 hours Impeachment Nonsense
  • 10 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 2 days What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Ignore The Pullbacks In Oil Prices

Refinery

Oil has been hovering nearer to $65 for the past several weeks, after reaching above $75 during early July. But the few things that have been stalling oil’s progress over the last two months seem to me to be fleeting, with lots of indications that the more substantive fundamentals continue to strengthen. In all ways, and despite the stock market’s lofty heights, this seems to be a moment to invest for much higher oil prices to come.

Let’s look at the current roadblocks that seem to be detouring oil’s steady climb higher. The first, and biggest seem to me to be the continuing Trump trade war, which has put a steady price decline into many commodities, most starkly with grains like Soybeans:

(Click to enlarge)

Tariffs naturally depress commodity prices as higher taxes tend to depress demand. Although the targets of tariffs has been more focused towards grains and base metals, oil has not been isolated completely from their effects.

But this seems a temporary obstacle, as we’ve seen a new NAFTA agreement between the US and Mexico emerge in recent days. The hope is for Canada to agree to a renegotiation and a new agreement as well, and ultimately for China to start to consider some trade concessions. Whether this gives Trump an undeserved victory for small differences in these agreements or not, it seems clear that the Trade war does not benefit anyone, needs to be resolved sooner rather than later and will be abandoned…




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