Oil Property salesOn corporate updates, Exxon Mobil and Canadian partner Imperial Oil said on Tuesday they would sell their Montney and Duvernay assets in Canada to Whitecap Resources for $1.9 billion and when you start seeing large Oil companies selling off their properties they know that this is the top for high Oil prices and the best time to sell and that’s just smart business and indicates that we're close to the top.
Now back to Oil, Right now the only thing that they have for a reason to push the price of Oil up is tight supply but the US economic data continues to paint a bleak picture, including worse-than-expected GDP figures and dire consumer confidence data. Then you have the Federal Reserve Chair Jerome Powell reiterated Fed's commitment to do-whatever-it-takes to control high inflation and said the bigger risk is to fail to restore price stability so now the outlook for a recession outweighs the tight supply because once the largest economy (US) starts to slow down on buying from other countries their economy will also slow down and I feel that the recession is a guarantee and that will end any issues of a tight Oil supply. Who knows once Libya settles their dispute that Oil production that will be back into the economy will also put the brakes on tightness? If I was on the fence I would bet everything that by the end of July Oil will be at or below $100 plus when the FED comes out in July and raises rates another .75% that day Oil will drop. July will be a very important month for Oil and ATH. That’s another thing that points towards the top of this cycle is having large block sales of ATH shares trading hands because no one especially a broker house who crunches numbers would sell if they had a chance to make $ Millions.
GLTA JMHO (always DD)