• 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 13 minutes Could Venezuela become a net oil importer?
  • 18 minutes Oil prices going Up? NO!
  • 2 hours The Tony Seba report
  • 4 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 1 hour Could Venezuela become a net oil importer?
  • 2 hours Harley-Davidson "Made in EU"
  • 4 hours Erdogan After Erdogan: New Presidential Mandate After Yesterday's Elections
  • 58 mins Time Of Recession - China and Europe Are Warning That A Trade War Could Trigger A Global Recession
  • 8 hours LNG Shortage on the Way
  • 3 hours The U.S. Will Soon Give North Korea a Timeline of 'Specific Asks
  • 14 hours Kenya Eyes 200+ Oil Wells
  • 13 hours Are Electric Vehicles Really Better For The Environment?
  • 6 hours Sell out now or hold on?
  • 14 hours OPEC soap opera daily update
  • 22 hours Saudi Arabia turns to solar
  • 18 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours No LNG Pipelines? Let the Trucks Roll In
  • 1 hour Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
Alt Text

Uncertainty Looms Large Over Latin American Oil

While Venezuela is grabbing a…

Alt Text

Global Energy Consumption Soars To New Heights

The new BP Statistical Review…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Oil May Be Crashing, But Don’t Panic Yet

I am not a big one for sticking to your guns. Consistency that borders on the intransigent may be a good and rare trait in a politician, but there is a reason that there are very few traders who think like that. It is because the ones who did have already gone broke. It is important to remember, though, that in every financial market everything looks most offered at the bottom, and most bid at the top. Oil certainly looks offered right now as we test the lows levels that date back to 2009 and it is hard to find a reason to stick to a bullish outlook, but despite that, this is one time when I am going to stick to my guns. In fact, if you’ll forgive the mixed metaphors, it may be time to double down.

I have been saying for a while now that once the $62 resistance held to the topside in WTI and we started to head downwards, a test of the lows looked almost inevitable. If I am honest, I fully expected it to stop short of the actual low, but that hasn’t been the case. Overnight and early Friday morning, WTI traded below $42, at levels that have not been seen since 2009. Now I know the oil supply situation has changed since then with shale wells going into production, but global demand has also increased.

To logically justify oil at these levels in the long term, from a logical perspective, you have to believe that the global outlook for oil demand is at least close to what it was then. I don’t. I did take a step closer to that belief this week when…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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