As the effect of the coronavirus epidemic begins to recede and oil prices start to recover, the Energy Information Administration reported a crude oil inventory build of 400,000 barrels for the week to February 14, hardly affecting the tentative bullishness.
I am going to be the contraian view point and say oil will drop into 40 perhaps as low as high 30
We know china is not up to speed and will not for some time
The supply chain has not hit the west but it will
Oil demand means cars, trucks air planes all kinds of transportation to and from china and within china will not restart for some time, months more likely unless workers are ordered back to work Airplanes flying into and out of china may not resume for a normal schedule for a full yr
Oil is also a major factor in turning raw material into steel, all sorts of building materials
With china demand at 20 % of world demand nobody can expect china to just resume manufacturing and travel in a short time
Oil demand will fall off a cliff
Time will tell but that is MHO
Without putting a time frame on it, I'll bet you $1 that we trade Over $100 before trading BELOW $45.
I will take that bet of 1 dollar CAD
I mean what is a patriot unless I bet CAD
$1 CAD above $100.00 before below $45.00
I read an article that Russia consistently pumps just above their quota. Sooner or later Saudi is going to get tired of it and turn on the spigots. They have threatened that in the past. They will only play the patsy for so long.
retest of the recent lows is complete.