A Billion Barrel Bet
You know, sometimes you just have to laugh.
Or shake your head.
Or, my personal favorite, pull a Captain Picard...
It doesn't matter how many consecutive API and EIA prints we get showing enormous inventory builds, some folks are still determined that oil prices are going to stage a sustainable rally from current levels.
I mean yes, the OPEC production cuts are going ok. And there's some speculation that the cuts may even be extended beyond the initial six months. But the logic is always c
Hmm, what do they know that we don’t. This is either a big bet on Trump doing something that will make oil prices rocket, or a sure thing because they know that Trump will do something that will make oil prices rocket.
That doesn’t mean that the third option (Hedge Fund managers are just fucking stupid) is entirely off the table.
A figure representing ten days of world production? Where would the price be without hedge fund involvement? The shale players are thankful?
This is a scam. Fools looking for yield in market bleeding cash and bank passing out the heroin. “Sh*t no problem”, we have ink and funny paper lets just print some more “pain killer” for the addicts.
Don’t forget there will be new sanctions on Iran according to Trump. Maybe some people are expecting the Iranian oil exports to decrease bigly, if this happens the angry Iranians won’t stay quiet.