In 4 days, oil went back up 25%. So are we going to be back to 80 and 90 later this year? So, Chevron's cash flow problems are solved, done and over. No more ROMs RAEs BCG etc. etc. no need for this board either.
Thing is we just don't know if this is real or headfake.
Goldman Sachs likes to create "head fakes" then go the other way to reap big profits. That's what they do. Take what Goldman says with a grain of salt.
Goldman says relief rally is not over. Expected to continue.
It was traders covering short positions on purchase contracts and some other baseless noise. Recall the bounce last spring into the $60s well this is one at a lower level and there will be another in the fall. Peak driving season ends this Labor Day and gasoline volumes are full now plus refineries typically do their maintenance turnarounds in the fall so will need even less crude. So prices will drop. If it's a warm winter then gas and heating oil will make for another drop. Bad news for the oil business and a pay raise for the general public who could spur on the economy over the next few years and then the cycle repeats itself. Good luck!
OPEC expressed interest in "talking", the market was reacting to that...
I've seen a major offer golden handcuffs one quarter, then lay some of the same folks off the next quarter.
Will be interesting to see how this plays out in the smokey people session rooms.
Real question is what it does tomorrow. Lot of activity last couple of trading days was closing out positions for the end of the month.
Did China's economy improve today? We still dont have the cashflow to not cutback dramatically.......
Market always does what everyone least expects. Every pundit was forecasting $30 oil last week. LOL