• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 3 hours Trump will capitulate on the trade war
  • 8 hours China's Blueprint For Global Power
  • 3 hours Support Held. Back in UGAZ
  • 27 mins The power of propaganda has no boundaries: Which country has larger territory US od China
  • 7 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 10 hours PETROLEUM for humanity 
  • 41 mins Iranian Oil Tanker struck by missiles off Jeddah
  • 2 hours Crazy Stories From Round The World
  • 12 hours How The US Quietly Lost The 1st Amendment
  • 9 hours ISIS Prisoners Escape Syria Camp After Turkish Shelling. Woohoo!
  • 5 hours China 2019 - Orwell was 35 years out
  • 13 hours Leftists crying to make oil patch illegal friendly: 'Broken system' starves U.S. oil boom of immigrant workers: CONGRESS DO YOUR JOBS INSTEAD OF PANDERING!
  • 7 hours Total SA In Expansion: $600 million For India's Adani Gas

Breaking News:

Russia: OPEC+ Deal Will Not Be Revised

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

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 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…



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play