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It's Really Hard Not to get EXCITEDI've been waiting for this for a long time. We have spent the past two months suffering from the worry that demand for oil will crater, bringing oil prices down with it. Today is the culmination of all these fears reaching a "hard point" in time. Today marks the low for oil. The action right now confirms this opinion in my mind. Consider: China fears headline this morning. This is countered by facts on the ground that China is relaxing (albeit slowly) their COVID lockdowns. Shanghai quarantine period is currently down to 3 days - from one week only a week or two ago, and two weeks quarantine mandatory only a month ago. It's a big change for travelers to Shanghai, and will certainly be completely eliminated in another week or so. This is being done with the approval China's central gov't. I believe China's oil demand has bottomed. SPR releases end is in sight. Europe is rapidly moving to a "burn oil" for power generation policy. Switzerland announced this policy today, following earlier moves by Germany, France and others. Iran deal is close. So what? Won't make a diddly squat difference to supply (although the uninformed still think it will). Bottom line is that every piece of bad headline news I've been waiting for hit this morning - all at the exact same time. Oil responded with a major drop as expected, but I can see the strong hands are already buying this "sell the rumor, buy the news" event. The days not over, but I've been buying. Can you tell I'm excited??? |
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Msg # | Subject | Author | Recs | Date Posted |
441359 | Re: It's Really Hard Not to get EXCITED | gasisthefuture | 15 | 8/15/2022 11:05:42 AM |