Oil is Going Bananas

The price of oil on Wednesday morning plunged to another recent low as global geopolitical tensions grow, the volatility of Chinese markets continues, and the global glut of oil gets even bigger.

As of 10:30 a.m. GMT (5:30 a.m. ET) the price of Brent crude, the European benchmark, slipped to exactly $35 a barrel — its lowest level in more than 11 years.

The price is down nearly 4% on the day and still falling:http://www.businessinsider.com/oil-price-falls-to-11-year-low-january-6th-2016-1
 
I have a target of stable oil prices, due to the fact that nobody else is predicting it.

You can make a lot of money once in a while betting on a mega trend, but you can make a small amount of consistent money betting on going nowhere.

Most markets most of the time don't go anywhere when you figure in all the other things. Heck, sometimes you think you have made money and all that has happened is the value of your dollar has gone down.

That's why I don't like consistent money. There's always some catch to it.

All the money is made by being on the right side of a big trend. Cl already went through two of those. Give it a rest.
 
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Excuse me for my newbie-ness, but don't any of you think oil will bounce back in the summer? I don't trade futures, I'm thinking about investing in energy and oil soon.

No one thinks they'll bounce upward in the upcoming months?
 
Think about oil like this
  1. OPEC, which controls a vast majority of the available oil has NOT cut production
  2. Saudi Arabia, the major producer inside OPEC, has categorically stated they will continue out put unimpeded and their diplomatic war with another oil producer Iran slashes any probability of a consensus over cutting oil production.
  3. Overall, global demand for oil has slowed significantly, especially with China approaching at least a slow down if not an outright recession.
  4. Finally, Iraq is about to "lawfully" put its oil on the market soon where the production of oil is going to increase from 2.6M barrels a day to approx. 3.1M barrels a day and an already oil flooded market would witness more supplies.
  5. EIA data from past few weeks have been posting huge stocks of inventories indicating slower demand in US too.
The oil is clearly riding a bear and in coming short term future, prices are sure shot to fall to around $25 a barrel level. The fundamentals are so weak for the oil.
 
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