Oil does what it’s told. Current beating not related to a “reason” imho but rather massive selling of paper oil by BOE and other criminals. Manipulation of prices by selling paper commodities works for a season but we are laying the groundwork for energy crisis that will be long remembered. Strategic commodity markets (oil, silver) have become un-investable.
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Talk about price control via algorithm selling, your label of criminals is appropos. Almost 5% in one hour? With no change in geopolitical or inelastic supply-demand?
Reuters broke the "OPEC set to increase production" news a few weeks ago, IMO, with the express intent of lowering crude oil prices and affecting the election in Novemeber.
So here we go, as implied downhole, OPEC is now set to delay an increase, if it ever intended to increase in the first place, and the price of oil jumped $1.50 per BO within 30 minutes.
Now look for more main stream media dog dookey about more U.S. shale production, with fewer rigs, to counter the OPEC good news. U.S. shale never misses a chance, not EVER, to shoot itself in the foot again. Its a time honored tradition.
U.S. shale loves Trump and the drill baby, drill bull shit. That will drive the price of oil way down. In the mean time its producing wide open right now, promising more, in spite of OPEC's efforts, to keep the price of oil low and help Democrats get elected. Go figger.
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There are three reasons the price of oil is falling and the biggest one is U.S. tight oil over-production. Again. Tight oil has driven the price of natural gas into the dirt, now its doing the same thing with oil prices. Demand is slipping...what is the Permian doing? Ramping up, increasing guidance for the remainder of the year with greater "effficiencies, proudly producing more, with fewer rigs, while the prices goes down. Excuse my coon-ass but it is fucking stupid.
Why is always OPEC that has to fix this? Why must OPEC cut its production and not the U.S. cut it's production. Based on past experience, OPEC will cut, as it has numerous times, the price stabilizies or even increases...what does US tight oil do? It puts more rigs to work and captures more of OPEC's market share. I will never for the life of me understand the entitlement Americans often feel toward the rest of the world.
OPEC can do two things, raise the price of oil and let U.S. shale oil drill itself out of work, or drive the price down and put shale oil in the dirt.
One way or another, OPEC is within 4-5 years of not having to deal with this ever again. The U.S. will then struggle to produce half of what we do today and OPEC will then own us. Again.
I cannot often believe how dumb people are about oil and natural gas, about how much of it is actually left to be economically produced in our country.
Talking of price manipulation .
https://www.zerohedge.com/markets/how-reuters-manipulates-oil-market-two-headlines
Price Controls you say, all those bots I think were summoned for this, WTI is now $70. But on these news, it should have been $90-$100
This what having the elections just two months aways gets you!!!