• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 12 hours U.S. Presidential Elections Status - Electoral Votes
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Australia sues Neoen for lack of power from its Tesla battery
  • 23 hours Evergrande is going Belly Up.
  • 1 day Europeans and Americans are beginning to see the results of depending on renewables.
  • 18 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 17 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 11 hours Oil Price: does the security vacuum in the Middle East spook investors?
  • 10 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 1 day Ozone layer destruction driving global warming
  • 4 days Forecasts for Natural Gas
Soaring Energy Prices Become Major Headache For China

Soaring Energy Prices Become Major Headache For China

Soaring energy prices are already…

Oil Prices Continue To Climb On Supply Disruptions

Oil Prices Continue To Climb On Supply Disruptions

Continued supply disruptions in the…

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

Premium Content

There’s No Strong Fundamental Reason For Oil’s Decline

The oil markets continue to be gripped with the continuation of violent selling in the last week, displaying what I can only describe as a ‘traditional’ puking:

(Click to enlarge)

Notice, over the last 5 weeks how consistent the pattern has been: a long downwards session candlestick, achieved under normally heavy volume, followed by 2-4 sessions of slower, digestive, lesser volume sessions that might attempt at retracement higher, but ultimately fail with another violent down-move under heavy volume.

This type of action is classic – and yes, it is definitely trend reversing, at least in the medium term. But more than that, it indicates just how convincingly hedge funds and other speculative accounts have been exiting longs, and in fact, begun establishing momentum shorts in the futures markets. This ‘two small steps up, one giant leap down’ is precisely indicative of this lone speculative trading pattern affecting the oil markets at large.

During these moments, you can take the fundamentals – no matter what they might say to you – and toss them. Until you see a stability in hedge fund positions, that selling pressure from longs reversing to shorts will override everything.

This financial pressure on oil has been helped along in every case by widespread media bashing of the oil complex. For example,…





Leave a comment
  • Clyde Boyd on November 04 2018 said:
    What absolute oil price manipulation propaganda.

    Having traders write articles about oil prices? Someone needs to go to jail for attempted price manipulation.
  • The masked avenger on November 05 2018 said:
    The rise of ev's and hybrids continues as does the decline in solar cost and other alternatives cost. Battery efficiency is getting better daily. If oil wants to remain relevant. The price must go down and stay down. Basic economics.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News