For the last two days, anytime WTI (West Texas Intermediate Crude) reaches $75, HUGE volumes are rolled out, milking liquidity and pushing the price down in giant red candles.
I believe before oil started it’s runup, an institution bought HELLA futures contracts and start unloading when they hit $75. They are NOT then buying the dip they themselves created, if they are it’s stealthy, say 10% of what they sell to deflate the price.
My thought is it’s a conspiracy by someone to make America not care as much about going to war. If prices were running without these major dumps, gas would already be 75¢ higher than two weeks ago. We know gas prices move sentiment in politics. Joe Biden drained the fucking emergency strategic reserve to move prices down before an election.
The oil barons usually raise prices before 4th of July, expecting heavy demand for the holiday.
I’m thinking even with a miraculous peace treaty between Israel and Palestine and Iran and Yemen (edit: mistakenly put Oman originally) and Lebanon, the lowered amount of Brent crude being shipped through the Gulf Will cause WTI to pop to $80+.
I just read an article today about Alaska may be reopening part of the Anwar.
What do you guys think?
I don't personally trade in crude after learning about the sheer volume that is parked just offshore waiting for amicable futures and/or political reasons. This guarantees the holders are going to wreck you at any given time, akin to a crypto rug pull.
It's all a rigged game, it's just a matter of trying to figure out their game and riding their coattails. Or make long term investments
Gasoline can occasionally inflate more than crude due to it being a value added product, but it generally doesn't get too far out of balance for very long. I remember when Bush went to Iraq, a lot of new houses were being sold to "investment firms" and nobody moved in when they closed. As inflation tried having it's way with construction materials, they would liquidate the inventory a little at a time to keep inflated housing prices from hitting the market. It might be a similar play. Sometimes I think the Democrats did this in reverse to inflate the housing market to extract higher property taxes
Maybe that's why Trump met with Saudi Arabia before this started
Lol, OPEC literally agrees on the rate of production to keep the oil price stable. It's one of the most manipulated markets on earth.
I only really trade it as a hedge because it's channel locked between 60 and 80 which is the band between which shale is unprofitable and past which OPEC will flood the market. Nation states hoard it to prevent its leveraging potential from undermining negotiations.
Thanks for the info