• 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
  • 1 hour Let's Just Block the Sun, Shall We?
  • 4 hours Venezuela continues to sink in misery
  • 2 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 20 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 days OPEC Cuts Deep to Save Cartel
  • 22 hours Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 2 days $867 billion farm bill passed
  • 15 hours Regular Gas dropped to $2.21 per gallon today
  • 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
  • 2 days Global Economy-Bad Days Are coming
Martin Tillier

Martin Tillier

More Info

Trending Discussions

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 early and recovering strongly as the day progresses rather than giving up early gains collapsing during market hours. The dollar (figure 3), after flying high in its role as a safe-haven, is losing ground, and even…

To read the full article

Sign in for free as an Oilprice member and gain access to this premium content.

RegisterLogin

Trending Discussions


Leave a comment

Leave a comment




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