• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 8 minutes What Can Bring Oil Down to $20?
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 3 hours Alberta govt to construct another WCS processing refinery
  • 6 mins Venezuela continues to sink in misery
  • 4 hours Let's Just Block the Sun, Shall We?
  • 5 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 23 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours Water. The new oil?
  • 1 day Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 2 days OPEC Cuts Deep to Save Cartel
  • 2 hours Regular Gas dropped to $2.21 per gallon today
  • 2 days $867 billion farm bill passed
  • 2 days Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 2 days WTO So Set Up Panels To Rule On U.S. Tariff Disputes
  • 2 days IEA Sees Global Oil Supply Tightening More Quickly In 2019
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

Oil Panic Favors The Bold

There’s panic in the air. You can feel it.  The market for oil has been dropping daily, now trading under $85 – under $90 for Brent North Sea grades.  The headlines on CNBC are all about the turmoil, the volatility and uncertainty with investments.

It’s an environment where traders tend to shine.

I’m not going to try to predict the bottom in oil – when there’s this much panic surrounding a market, I know from experience that markets can wildly overdo what the fundamentals will tell you are the limits of market moves.  Now is the time, however, to assess those fundamentals and make some positive moves for your portfolio – moves that require some courage, to be sure.  

Every oil watcher is now predicting lower prices, $75, $65, even $50.  I’ve seen reports from Citibank, Goldman Sachs, Barron’s – even the very small and elite PIRA energy group of energy consultants – looking for much lower prices from here.

But this is what I see:  There’s panic based upon a belief that the EU is headed into a full-blown recession, that Chinese data points indicate that the bubble there is about to burst, that interest rates are about to rise here in the US, immediately and certainly not slowly.  I don’t believe any of those things are happening.

Sure, stock prices were inflated and needed a correction.  But the talk in the market is of more than…

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