China announce a record 1.6 million ton purchase of oil and price kept dropping. They are going to store it at sea. The only buyers are those with spare storage capacity. Oil is going to $12
It's possible and almost certain without intervention. Still considering how well they defended the markets recently and how well they've defended the EURO all these years, I wouldn't be overly surprised to see 20ish hold for awhile.
Shorts carried out in a stretcher the last few weeks. Wonder if those longer term shorts on here threw in the towell?I'm willing to bet some shorts gave there whole month of march profit away and more.
Problem is: you can't solve this by printing money. Storage is a real issue and cutting back on production is really difficult so probably even the 10 million barrels reduction will not be honoured. There is no authority to solve this. Unless demand rises drastically and really soon 10$-12$ is likely.
At least a month? I don't trade CL just to be clear, but after seeing all the intervention. I don't see the point in them letting in drop to levels that low. But again I am not CL expert, nor claim to be.