Oil Market Isn’t Broken, Just Responding To A Supply SurplusHow can there not be a surplus with a boom in drilling and production globally taking advantage of higher-priced Oil and NG in 2022 plus with the contraction of economies as Central Banks raise Interest Rates to slow Inflation plus China is experiencing an outbreak of COVID and lockdowns and Europe has been shutting down manufacturing and idling plants due to NG and the US FED is doing everything possible to fight Inflation and if it means throwing the country into a recession then that's the way it has to be, on the 21st the FED will announce another rate hike so the markets will be extremely cautious Monday and Tuesday so I can't see them rallying but stranger things have happened. And if for once Oil doesn't trade higher Friday Oil could retest at $80 even. Go back a bit to when Oil was trading at around $110 and the first sell-off happened pushing Oil into the $90+ then it started to happen more frequently until Oil stayed in the $90+ then Oil sold off into the $80+ and then it happened until it was staying mostly in the $80+ so if we dip down into the $70+ expect this pattern to continue, how many times have we seen Oil sell-off by $10? if that happens then my prediction starting in June when Oil was at $110 of hitting $75 by year's end will happen 3 months sooner. It's always about supply and demand and if everything today stays status-quo then this is a real possibility when the global recession is in full force but there's Russia the wild card who could manipulate the Oil market by shutting down production. Remember 1991 when in Kuwait 650-732 Oil wells were set fire to for 10 months Oil at $21 stayed there but with Russia, Oil could rise. And remember that Russia right now is selling their Oil cheaper and if it's capped to $60 then we can't sell ours for no $100 that's another reason for Oil to drop. For the next few trading days leading up to Wednesday 21st trade with caution and if you're into profit you might want to protect it for these few days and sell at day end you can always jump in the next day if the stock is rallying and you might not enjoy the full gain as compared to holding from the day before but you completely eliminate the risk of loses if Oil trades lower just till Wednesday. JMHO
The Oil Market Isn’t Broken, It’s Just Responding To A Supply Surplus | OilPrice.com