Oil to continue lower long term, but may rise short term
I went short going in to the OPEC meeting. I thought it was silly that the world expected a bunch of cheaters to announce that they were going to increase their production cuts; they didn't even meet the first goal of .12 million per day cuts. Instead, they only hit about 900k in cuts. OPEC did not agree to extended, deeper cuts, but agreed to maintain their current cuts.
I was kind of laughed at by individuals saying that oil was a longterm buy. And, then oil dropped like a rock.
The fundamentals in the United States and the rest of the world are that there is a mild economic slowdown. In China, that slowdown is likely to be horrifically large. Then there is the economics of too much oil being produced. That is oil's reality.
I am shorting oil WTIUSD with options. However, I am going to hold off a couple of days since there was so much price movement to the downside. If we hit about $47.50 - $48.50, I will put on a longterm short, selling calls, buying puts with about a 3 month outlook.
I was kind of laughed at by individuals saying that oil was a longterm buy. And, then oil dropped like a rock.
The fundamentals in the United States and the rest of the world are that there is a mild economic slowdown. In China, that slowdown is likely to be horrifically large. Then there is the economics of too much oil being produced. That is oil's reality.
I am shorting oil WTIUSD with options. However, I am going to hold off a couple of days since there was so much price movement to the downside. If we hit about $47.50 - $48.50, I will put on a longterm short, selling calls, buying puts with about a 3 month outlook.
