RE:RE:RE:RE:Picked up some cheap shares at 1.72Pivotcatalyst wrote: hedge funds positioning themselves for implications of border tax adjustment of imports of crude oil into the USA
It would raise the price of dometsic crude compared to Brent so hedge funds are increasing their exposure to futures and options relate to WTI while decreasing exposure to Brent
This still remains to be seen whether it's going to happen or not. The real question is how much more will shale oil production continue to rise in response to better oil prices. My guess here is Saudi may want to push for deeper cuts at the end of 6 months if they are not satisfied with the market balance. Shale oil is currently pumping out 500k more barrels of production than it was in July of 2016. There is a real possibility the U.S. Could be pumping 500k more as quickly as the summer time which would put it back near June 2015 highs.