Post by
Indicator on May 03, 2022 6:52pm
You make a good point Dogsbreakfast4U
Oil is a cyclical trading commodity, not a forever hold.
That said, the question begs are we indeed in a super cycle of bullish Oil due to lack of investment/supply as some pundits have forecasted (aka Nuttal +Tahmazian), or will Oil let longs down again as it did so well after 2014 when at that time pundits were predicting peak supply had been reached and it would never falter again, only to see the birth of fracking and a miserable Oil bear market for 6 years.
So may influences on the Price of Oil today, war and potential Russian Oil market squeeze, shale drilling and their supposed new fiscal religion, ESG worries and the Lexus crowd holding their noses, Greta and her zealots ..... etc etc ...
Time will tell ... in the meantime, after a fantastic bounce off the 2020 low, I now keep my bets more modest and nimble.
Good luck!
Comment by
Chad123 on May 04, 2022 7:52am
Your 2 pundits are correct as far as I am concerned. There is a shortage of molecules and it is not going to be fixed overnight. At some point in time it will adjust to properly reflect a balance of some sort but until then just keep your eyes on the ball so to speak. Unless the world goes into a global recession/depression, It is possible that we will not see oil under $70 again. Cheers!