RE:Repost: What they will do if the WTI remains at $30 Excellent. Thanks for posting.
It's important for all investors here to note that all the negative posters are traders wanting you to give up. I'm adding to a position on BTE because looking at all that data on oil, stockpiles etc.
A lot of numbers are simply based on models. The information we have is that as soon as the expert limits were lifted in the US, numerous ships carrying Texas crude were making their way across the ocean.
We also know that investor sentiment is very low. Our absolute lows at $1.57 but anything at this price currently will be a steal if crude recovers.
Oils experts themselves, Saudi's central oil producer calls the $30 per barrel "insane", because it is. It costs more to produce in a sustainable manner and this was all a battle about market share. Saudis have told the world, they are prepared to negociate but large producing countries need to be at the table. We have to remember that shale oil from the US and the full ramp up of productions in Iraq have caused the high increase in world output.
And China and other economies are growing. China's growth in the next five years will be impressive.
Here's the WTI chart for light crude which impacts BTE
Here is the credit market charts which also impacts BTE
Short term, don't rush to jump on this one but be ready at a moment's notice.
If we aren't at bottom, we aren't far.