Baytex Energy Corp T.BTE

Oil Markets Are Consumed By Economic Fears

[smallcaptdr]

With stocks firmly in the red, house prices trending downwards, US yields hitting multi-year highs, and the threat of a global recession still looming, fears of an economic downturn certainly seem well founded. Amidst widespread expectation that next week’s Fed meeting will see another aggressive interest rate hike, sentiment in the oil market is decidedly bearish, with oil prices on track to record a third consecutive weekly decline. While there are plenty of bullish catalysts in the not-so-distant future for oil markets, none of them are immediate enough to counter 
current economic fears. 
I think that everyone is in agreement that the global economies are heading for a serious decline and contraction and have just started to react to the latest Interest rate hikes so further rate hikes will all but guarantee that this contraction will start to pick up speed taking with it Oil demand hurting Oil prices and on top of this we have been seeing Oil production being added from various ways all a recipe for $75 Oil even with some bright spots being bullish I feel that the only way that Oil has any chance of heading back over $100 won't be coming from the economy it will have to be through manipulation, Russia shutting down Oil production and sales or OPEC making huge cuts to production are the 2 hail Marys and if this doesn't happen then get used to $80+ Oil for now. Traders are the ones who control Oil prices and traders can drive Oil higher or lower on speculation, facts, and rumors and that's why the Oil market is so volatile making it extremely hard to trade Oil stocks. BTE has become a TSX darling and investors feel extremely reassured by BTE's merits and track history of becoming one of the stocks that will benefit hugely if Oil heads over $90+ or higher. This coming week the price of Oil could go in either direction with the FED raising the Interest rate but the markets will be skittish trying to decide if the FED does a .50%, .75%, or a full 1% hike but right now a .75% is all but guaranteed. Buy on rumors sell on facts and once we get through this week everyone will hopefully then find direction.


Oil Markets Are Consumed By Economic Fears | OilPrice.com

[Greenday]

@ smallcapdr - Fear.  Author of the article didn't provide any information on how he measured fear.  The VIX is the fear index but yet he didn't offer it as evidence of fear in the market.  How come?  All the author concluded was that the price of oil could go up or it could go down on factors that are always in play.  For all the reader knows, the price of oil