New Trillion Dollar Oil Deal and What it Means for Price...
Well once again there appears to be heavy talk on oil making a run to 100 a barrel over the next couple of years. This of course in relation to the Armco's multi Trillion Dollar valuation. The story is here if you want to bother reading it.
https://www.zerohedge.com/news/2018-03-17/truth-about-aramcos-2-trillion-valuation
Oil fluctuates in price in relation to the economy and what people can essentially handle at the pumps now and that is it. Read that statement until it really sinks in alright.
I have heard all the hype a gazillion times before and sure these oil pirates would love to see the price of oil back above 80 a barrel. To no ones surprise much of the underdeveloped worlds economy relies on crude exports. That is not to say the income distributes properly but well this is how the needy survive. Their corrupt dictators throw them a bone or two every now and then to keep them happy and so the racket continues. Here in Canada it is not much different if only from the perspective of what the broke governments can squeeze from its people. The price at the pumps is all that matters in relation to Joe Six pack and that price really hasn't wavered that much in a couple of decades. You know, you goose the price on the back of false price increases, get the population used to paying more at the pumps and then you leave it there regardless of what happens in the markets.
I would love to see these assholes get their own but that is not likely to happen any time soon so I don't waste my time worrying about it. If you want to be independent from them then you have to take your own steps to do so and yes there are ways to do it now. Electric cars and other ways of making gas last longer are here to stay. This by itself would dictate that oil price is headed down over the long run and not up. Why would you need more oil when people are not using it?
I don't really buy this new deal at all either in relation to the price of oil. Were oil to head sharply in that direction well, debt would implode just like it did back in 2008. So don't look for that to happen. Same thing with real estate. When something goes wrong now a mystery company jumps in with billions to right the ship before it begins to take on too much water. That mystery company is likely owned by the big banks and is stocked by the fed. Plain and simple. A funny money solution to funny money policies.
You can see from the chart below that I bought the break out to the upside in WTI last week and it worked well. You can see where my sell is located so that is about all I expect in relation to price movement. What this does in price action is set the stage usually for further downside once traders take the break out. So I am not expecting much. In fact I may liquidate on open tonight. I am thinking that way.
Oil never is nor has it ever been about supply and demand. There are innumerable examples of this over the years. It is about playing a price game. Nothing more.
That price game is likely headed down before up.
Anyway wishing you a good week and trade safely.
https://www.zerohedge.com/news/2018-03-17/truth-about-aramcos-2-trillion-valuation
Oil fluctuates in price in relation to the economy and what people can essentially handle at the pumps now and that is it. Read that statement until it really sinks in alright.
I have heard all the hype a gazillion times before and sure these oil pirates would love to see the price of oil back above 80 a barrel. To no ones surprise much of the underdeveloped worlds economy relies on crude exports. That is not to say the income distributes properly but well this is how the needy survive. Their corrupt dictators throw them a bone or two every now and then to keep them happy and so the racket continues. Here in Canada it is not much different if only from the perspective of what the broke governments can squeeze from its people. The price at the pumps is all that matters in relation to Joe Six pack and that price really hasn't wavered that much in a couple of decades. You know, you goose the price on the back of false price increases, get the population used to paying more at the pumps and then you leave it there regardless of what happens in the markets.
I would love to see these assholes get their own but that is not likely to happen any time soon so I don't waste my time worrying about it. If you want to be independent from them then you have to take your own steps to do so and yes there are ways to do it now. Electric cars and other ways of making gas last longer are here to stay. This by itself would dictate that oil price is headed down over the long run and not up. Why would you need more oil when people are not using it?
I don't really buy this new deal at all either in relation to the price of oil. Were oil to head sharply in that direction well, debt would implode just like it did back in 2008. So don't look for that to happen. Same thing with real estate. When something goes wrong now a mystery company jumps in with billions to right the ship before it begins to take on too much water. That mystery company is likely owned by the big banks and is stocked by the fed. Plain and simple. A funny money solution to funny money policies.
You can see from the chart below that I bought the break out to the upside in WTI last week and it worked well. You can see where my sell is located so that is about all I expect in relation to price movement. What this does in price action is set the stage usually for further downside once traders take the break out. So I am not expecting much. In fact I may liquidate on open tonight. I am thinking that way.
Oil never is nor has it ever been about supply and demand. There are innumerable examples of this over the years. It is about playing a price game. Nothing more.
That price game is likely headed down before up.
Anyway wishing you a good week and trade safely.
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