2006 vs 2018 - Eerily similar Read some interesting info about the correlation between 2006 and 2018. In Fall 2006, WTI rallied to the multi year highs to the mid $70s. Then at the start of winter it sold off hard, sinking all the way down to the mid $50s in a matter of months. December 15th 2006 , OPEC decided to implement a 1.2 million barrel per day production cut to help stabilize falling prices. WTI followed that cut by going from mid $50s to $100 in the next 12 months and then proceeded to rally even further to $140 from there without any significant pull back (as in didn’t break bullish technical uptrend) during that entire rally up to $140 after the production cut. Basically went straight up for a year and a half from the late 2006 dip.
Now In 2018, as we all know WTI rallied in the fall to $76, a 4 year high. Short after this, WTI crashed hard down to the mid $50s (where we are now). OPEC is meeting in 2 and a half weeks on December 6th where they have already stated they will implement a 1.4 million barrel per day production cut (almost exact same %age relative to supply) to help stabilize falling oil prices. History has a way of repeating itself. What will the next 10-18 months bring ?
Couldnt be happier I got to add more BTE and also a bunch more GXE at these lows. That sell off was wayyyyy over done and is now firmly in the past and we are now resuming the uptrend, just like in 2006.