UnknownUnicorn6395641

WTI War Party

Short
BLACKBULL:WTI   WTI Light Crude Oil
Saudi-led OPEC and its allies agreed to a larger-than-expected increase in oil production, potentially allowing Riyadh to pump more crude. Simultaneously, Saudi Arabia agreed to extend a two-month-old cease-fire in Yemen with Iran-backed Houthi fighters.
Comment:
Aramco is the world's largest corporation, and they want lower crude prices.
Comment:
Pro Tip: Central banks all over the world are aiming for inflation with unlimited ammunition under the guise of national security.
Comment:
Crude demand is suffocated by higher interest rates.
Comment:
Food for thought: The initial drop in oil prices from mid-2014 to early 2015 was primarily due to supply factors such as booming US oil production, fading geopolitical concerns, and shifting OPEC policies. However, deteriorating demand prospects also played a role, particularly between mid-2015 and early 2016. This helps to explain why the drop in oil prices did not result in an immediate boost to global activity.
Comment:
For inventories to "finally normalize by late 2023," global oil prices would need to average $135 per barrel for a year beginning in July.
- the analysts
Comment:
Something must happen to cause a 500,000 b/d drop in global crude demand to rebalance the market.
Comment:
hourly evening star candlestick pattern on 6/14
Comment:
weekly evening star candlestick pattern on 6/18
Trade active:
6/17 WTI entered into a downtrend on the daily supertrend indicator
Comment:
According to CFTC data, retail traders are now the most net-long since December 22, when WTI was trading near $73 per barrel. We usually take a contrarian approach to crowd sentiment, and the fact that traders are net-long suggests that WTI prices will continue to fall.
Comment:
hourly evening star candlestick pattern on 6/29
Comment:
Crossing the monthly belkhayte timing zero line into negative territory.
HYG correlation with crude is as negative as in 2019-2020.
Comment:
Higher prices will always encourage additional production. In a contracting market, this will drive down prices, and any deliberate attempts to cut production in order to raise prices will simply backfire.
Comment:
Iran is lowering its crude prices in order to gain market share.
Comment:
long positions are increasing
Trade active:
U.S. commercial crude-oil inventories surprisingly increased last week, while gasoline stockpiles also rose.
Comment:
"If you have a milkshake and I have a milkshake and my straw reaches across the room, I'll end up drinking your milkshake."
-Senator Albert Fall
Trade active:
Any cut to crude output will prolong depression. Cutting production cuts growth. Checkmate for the Autocrats.
Comment:
Saudi's need money.
Comment:
The straw that broke the camel's back.
Comment:
German industry stopped buying gas and power forwards, or hedging . Companies assert that either prices will decrease. Or they'll stop producing.
Trade active:
OPEC cut growth. There will be less oil and lower prices.
Trade active:
The Department of Energy says its plan to restock US emergency oil supply after fiscal 2023.
Trade active:
OPEC cutting more growth.
Trade active:
looking for profit at $60, $40, $20
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