WTI and VII price actionlooks like we have a trifecta of sorts possibly coming
- WTI down big overnight and now it's trying hard to double bottom on 1 minute chart and come back pretty hard
- friday morning gap down, plus here in Canada going into long weekend
- opec meeting coming up Sunday
this weekend will be do or die for oil and to large extent VII
I would think that with the gap down and the opec meeting coming up, we might start inching back up throughout the day (VII, as well as WTI), surely there must be some longs that can't help but start thinking what if OPEC comes out of the meeting with talk of cuts, which might put a floor under WTI
just a quick note on trading - my oils watchlist is getting pummeled today, BTE down 8%, POU down 14% at one point, but my gas list is doing much better, with two exceptions - TOU down 5%, as mentioned before, probably reverting back to the trend, after yesterday outlier up day, and ARX getting pummeled on what appear to be mediocre results; dry gassers doing better overall, of course, with US nat gas up another 5%. So I guess that explains VII being in the middle, down about 2.5% as I write. Our US gas exposure should help the cash flow, of course, being about 1/2 hedged. We'll lose money on paper on the hedges, but the other half of production should be printing cash by now, with AECO at 3 bucks CAD and US terminals at 3.60 USD range or higher
let's hope for WTI having bottommed and trending up into the weekend, kumbaya
IMO