RE:Take profits now before the long weekend! I swing trade and think the price has more room to run higher before taking profits. US looks to still be trying to jawbone the Saudi's into increasing production. Media response has also been rather subdued. I think Croft and Kung hit the nail on the head with their comments.
RBC Capital Markets strategist Helima Croft expects any reserve releases to be incremental. “A more clear risk, in our view, is the introduction of U.S. product export restrictions in a rising retail gasoline price environment,” she wrote. Limiting exports would upset Europe, which needs to import fuel, but it would depress the price of gasoline.
The administration’s response is likely to be determined by how much the oil price increase impacts prices at the pump, Kung said. For now, gasoline prices have begun creeping up slowly, and remain below $4 on average. But with elections approaching, Biden could be quick to act if prices rise more, Kung said. “The current level probably doesn’t justify it,” he said. “I think they are in wait and see mode.”
DukesMtl wrote:
Slow Crash unfolding
The stock market is crashing. Take a look at the NASDAQ & S&P 500 over 10 years. Long drawn out Recession is being priced into the market.
SP's already had the OPEC cut run up starting before it was announced. It's possible we will see a pullback soon as the SPR release still has alot of runway....,
Biden to further authorize the release of more barrels. Eric Nuttal is living in the Oil Patch fish bowl and too close to the trees to see the forest!
It's fear & sentiment unfortunatly that are the driving forces behind SP's not his theasis on fundamentals...
A long drawn out recession is ahead and Eric would have us believe that our nest eggs will be safe in Canadian Energy. Take a look at TESLA and Enbridge SP and ask yourself why are they trending down. The market is crashing folks!!!