Anyone?
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Short WTI. Technicals say it's going to go to 20. We'll probably see it level off at 20 to 25 when opec finally decides to cut supply
Short WTI. Technicals say it's going to go to 20. We'll probably see it level off at 20 to 25 when opec finally decides to cut supply
If we have a product that is in low demand and oversupply, then we have a problem with sustaining the price. Unfortunately, we do not have a lot of control over portions of the market in which we play so this is the cost of doing business.
We could rack up some serious losses and hurts in the next 12-24 months.
What's going to happen to the field hands when chevron can buy oil cheaper than pumping it out of the ground? Will they sell the leases?
At $60, I thought it was the end of the world. Boy, was I wrong.
I was and I think we can see it dip into the 20s. Here is my logic - the issues that China is facing are just a blip right now, on the macro scale. However, if their engine completely stalls, we will have a major reactions on the markets and there will simply not be any buyers which may cause a short term shock with prices dropping into the 20s. Please note that this would not be demand induced, as demand will still be there to sustain oil prices on much higher levels. I am referring to a speculative shock where people just stop buying as they are afraid of what's coming. That's my two cents.