• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 3 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 2 hours Let’s Try This....
  • 3 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 19 mins New Aussie "big batteries"
  • 7 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 3 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 8 hours China to Impose Dictatorship on Hong Kong
  • 14 hours 60 mph electric mopeds
  • 22 hours Nothing can shake AMLO’s fossil-fuel fixation
  • 19 hours Iran's first oil tanker has arrived near Venezuela
  • 1 day US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
The Worst Oil Trades Ever Made

The Worst Oil Trades Ever Made

Wall Street is full of…

Another OPEC Producer Looks To Back The Aramco IPO

Another OPEC Producer Looks To Back The Aramco IPO

As the world’s largest initial…

Martin Tillier

Martin Tillier

More Info

Premium Content

How To Play A Recovery In Oil Prices?

“Feel” is a concept that, in analysis at least, doesn’t get the respect it deserves. We are all supposed to have only logical, analytical reasons for believing something is about to happen, but if the last few weeks has told us anything it is that when markets get the bit between their teeth, logic is the first casualty. U.S. stocks dropped over ten percent from their highs on fears that the Fed may make a miscalculation and that growth may be a bit slower than previously anticipated. For comparison, by the time the same thing had happened in 2008, it was clear that the financial system was in trouble and we were heading to an actual recession. Oil has fared even worse, dropping over twenty percent on the same growth fears, price driven supply increase in the U.S., and exceptions to the Iran sanctions. In both cases, the move has gone way beyond logic, so I make no apologies for saying that this morning, it feels like things are finally changing.

(Click to enlarge)

Figure 1: S&P 5 Day Chart

(Click to enlarge)

Figure 2: WTI Futures since 08/01/2018

(Click to enlarge)

Figure 3: Dollar Index 3 Month Chart

The stock market (figure 1) has reversed recent trends in price action, dropping…





Leave a comment

Leave a comment




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