Buz Investors Oil Shorts I had a lighthearted conversation with a colleague not so long ago, asking if they feel they might have an irrational bias toward shorting oil, simply because the flow on effect will mean cheaper petrol when they go to fill up their cars later on.

Oil Shorts in Play or an Irrational Bias for Cheap Petrol?

Oil Shorts in Play or an Irrational Bias for Cheap Petrol?

Buz Investors Oil Shorts I had a lighthearted conversation with a colleague not so long ago, asking if they feel they might have an irrational bias toward shorting oil, simply because the flow on effect will mean cheaper petrol when they go to fill up their cars later on.

Buz Investors Oil Shorts I had a lighthearted conversation with a colleague not so long ago, asking if they feel they might have an irrational bias toward shorting oil, simply because the flow on effect will mean cheaper petrol when they go to fill up their cars later on. I honestly feel I might have this! Am I alone here? Surely not. Well, now we’ve got that little disclaimer out of the way, lets have a look at some oil charts. We’ve been watching this oil resistance zone that we can see on the weekly below. Price has rejected out of the zone and we’ve seen some follow through, which has brought us down to retest the upper side of this bearish



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Oil Shorts

Price has rejected out of the zone and we’ve seen some follow through, which has brought us down to retest the upper side of this bearish trend line, this time as possible support.

Oil Daily:
160313_oil_daily
Click on chart to see a larger view.

This is the level that’s in play, but seeing as though the higher time frame horizontal support has held and we’ve seen the follow through from sellers that we have, I am inclined to play oil from the short side.




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Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Oil

  • Saudis eye price boost The commodity is trading at $44.59 per barrel at 09:40 GMT this morning, 0.71% lower from the New York close.
  • Crude oil witnessed a high of $45.08 per barrel and a low of $44.58 per barrel during the session. In the New York session yesterday, crude oil fell 2.14% to close at $44.91 per barrel,
  • after the EIA disclosed that US crude oil inventories rose more than expected by 2.3 million barrels to 525.9 million barrels during the week ended 26 August 2016. Immediate downside, the first support level is seen at $43.99 per barrel, while on the upside, the first resistance level is at $45.70 per barrel.

Saudi Arabia has seemingly had enough of cheap crude

Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Two years after triggering an oil price war, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco.

The change in tone comes as OPEC and other producers such as Russia may resume talks on stabilizing output when they meet in Algeria later this month, after a similar effort to boost oil prices collapsed in April due to Saudi-Iranian tensions.

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“The Saudis are going to Algeria for a freeze,” said a source in the Organization of the Petroleum Exporting Countries who is familiar with the matter and declined to be identified.

“More and more ministers are now talking among themselves to evaluate their production position.”

OPEC in November 2014 made a landmark policy shift, led by Saudi Arabia, refusing to cut production by itself in the hope that lower prices would discourage higher-cost competitors that had eroded the group’s market share.

Further cementing the impression of a production free-for-all, OPEC ditched its last remaining supply-management tool, an output ceiling, in December 2015.