Friday afternoon softness. Where do these Friday afternoon quarterbacks think pou and wti are going to go from Friday at 3pm and Monday morning.
1. Pou is a horse. Pay $21.40 or $20.70 - it will not matter. It is a $30 stock right now and, eventually,the market will recognize that fact. Take a look at my tet and pou posts. I've owned pou from when it was a $4 stock. Same for tet. Pou will push into the $40s post merger and wti at $55.
2. The oil price curve is entering into backwardation. Supply is tightening notwithstanding USA production. Interesting to see Gulf Coast refiners complain to Trump that sanctions on Venezuela may increase cost of oil by $10 a barrel which needs to be replaced by CANADA or Saudi Arabia. Lol. Like the Saudis are going to send heavy oil to USA to keep price of heavy oil down.
3. On Tuesday and Wednesday oil price will go up anticipating another heavy draw in USA supplies. Sauidis have cut exports to 6.4 m barrels.
4. Five rigs came off last week. I guess USA shale is smartening up to the fact that they are not really making any money below $55 to account for full cycle economics.
5 After Venezuela, the usa will turn its' attention on Iran. Houtti rebels are playing bumper cars with Saudi oil shipments. A black swan event will occur but maybe not over is weekend.
So back to my point - wtf do people sell on a Friday. Soft.