Tomorrow it will be all about OPECOil market always reacts to OPEC meeting even though it shouldn't because everything should already be baked in the price already.
Its a coin flip. last week we got a strong relief rally based on what I thought was a bad EIA report. Production in the lower 48 actually went up yet the price rallied on, what I thought was, a mundane inventory draw. I got caught flat footed and missed the rally completely even though i had $10.40 marked on my chart as support.
So the market might rally on what seems bad news or maybe even tank on good news. This week the markets got it right in my opinion as the EIA report was a bear case - though really not that different from last week - go figure!
You got to get in and out quick though if their is a rally. It took just a few hours to lose all the gains made over a number of trading days.
One thing remains the same. The world oil surplus is close to 2M. Iraq and Iran will be bringing on supply in the not too distant future. US shale oil producers are lowering costs to the point of profitability at $60.
We need oil below $50, maybe $45 to have the beginnings of a nice sustainable rally. The high cost producers have to be driven out! So if we have a rally near term don't hold too long and lock in profits before you get caught.