Oil is down sharpley any reason !!!!~!
- Thread starter ksonsinc
- Start date
Surdo
Good i was holding it and it seem that after few sellers oil looked cheap at $66.50 and it bounced right back
Made $225 and i sold it not to be greedy i thik it was in the early morning wehn it just had a short squeeze
did know what was going on so i just took my profit and went to take a shower to go to work
but i am scared if it brake $66.50 we could see $65.00
Trading never say this thing cannot happen
Good i was holding it and it seem that after few sellers oil looked cheap at $66.50 and it bounced right back
Made $225 and i sold it not to be greedy i thik it was in the early morning wehn it just had a short squeeze
did know what was going on so i just took my profit and went to take a shower to go to work
but i am scared if it brake $66.50 we could see $65.00
Trading never say this thing cannot happen
Hey surdo
sorry for the confusing
I meant to ask you what price did oil close today fri ( sorry i am really confused ) my startgey runner does not open on sat and sun late evening it opens
I am thinking of going long at 66.50 level sems like there are lot of seller and there might be something going on ( big Players know something before we do and may be fcuk all the long u never know ) so let just see what happens
sorry for the confusing
I meant to ask you what price did oil close today fri ( sorry i am really confused ) my startgey runner does not open on sat and sun late evening it opens
I am thinking of going long at 66.50 level sems like there are lot of seller and there might be something going on ( big Players know something before we do and may be fcuk all the long u never know ) so let just see what happens
Someone posted earlier:
"....
And after $55.00, the rest of the move up was a technical rally the pricing of which was entirely speculative ( current and future global risk to production ).
If Iran issue is resolved, current crude price will deflate more since storage capacity is nearing maxmimum. Rising storage costs will eliminate contango. Therefore the logical conclusion to keep prices high for the benefit of the oilmen is an Invasion of Iran, which is imminent in the next few months."
Just a few comments i want to add here, and i do basically agree with the poster's remarks.. The number one reason crude is coming down is this, and the poster above aluded to it. Production has been exceeding demand and the excess has been going into storage. This is directly related to the futures market. Futures speculators have been forcing the price for future delivery up. However, as each contract relates to the physical existence of oil somewhere, that oil has to be stored until delivery. The worlds oil storgae facilities are roughly 90% full. Iran just bought a bunch of used tankers to expand their storage, but storage is nevertheless in short supply. When there is no more storage available at reasonable cost either production must be cut, or demand must go way up, or price must come down. That event is what the market is currently discounting. I expect crude to drop below $60 in 4 to six months. I don't think it will go much lower than the high 50's. If i'm right and all the cost reduction appears at the pump, which it won't, gasoline prices will move to the $2.35/gal area.
Good luck in your trading.
"....
And after $55.00, the rest of the move up was a technical rally the pricing of which was entirely speculative ( current and future global risk to production ).
If Iran issue is resolved, current crude price will deflate more since storage capacity is nearing maxmimum. Rising storage costs will eliminate contango. Therefore the logical conclusion to keep prices high for the benefit of the oilmen is an Invasion of Iran, which is imminent in the next few months."
Just a few comments i want to add here, and i do basically agree with the poster's remarks.. The number one reason crude is coming down is this, and the poster above aluded to it. Production has been exceeding demand and the excess has been going into storage. This is directly related to the futures market. Futures speculators have been forcing the price for future delivery up. However, as each contract relates to the physical existence of oil somewhere, that oil has to be stored until delivery. The worlds oil storgae facilities are roughly 90% full. Iran just bought a bunch of used tankers to expand their storage, but storage is nevertheless in short supply. When there is no more storage available at reasonable cost either production must be cut, or demand must go way up, or price must come down. That event is what the market is currently discounting. I expect crude to drop below $60 in 4 to six months. I don't think it will go much lower than the high 50's. If i'm right and all the cost reduction appears at the pump, which it won't, gasoline prices will move to the $2.35/gal area.
Good luck in your trading.
Hey piezoe
I agree to you that there is more storage
but what will happn if iran get invaded or test,s nuclear or a storm hit the gulf of mexico
I usually dont like to go long in anything i look for shorts ( equities and ES NQ ) but in oil i have to to say i like going long cause the chance are that it will have to go up due to very sensitive news but hey u never know never say never
I think It is just consolidating and might even go to $63
LEts just watch and see what happens
I agree to you that there is more storage
but what will happn if iran get invaded or test,s nuclear or a storm hit the gulf of mexico
I usually dont like to go long in anything i look for shorts ( equities and ES NQ ) but in oil i have to to say i like going long cause the chance are that it will have to go up due to very sensitive news but hey u never know never say never
I think It is just consolidating and might even go to $63
LEts just watch and see what happens
I would like to add a comment as well - there is a big difference between speculating using index traded futures and actually choosing to deliver/accept delivery of the underlying asset. I don't need to have 1,000 barrels of oil in my house (so to speak) in order to open a short position of CL contract.