It just seems too obvious of a trade, that's what bothers me. Imagine what would happen if a tanker was sunk in the Straits of Hormuz. The initial spike would lead to a squeeze of epic proportions. There's a lot of bad actors in this world. I wouldn't put it past Saudi or Russia one bit, orchestrating it to look like Iran. I dunno.... I'd be careful shorting it though. One could wake up with their stop triggered and find their cover price north of $45.
This is the kind of day you should be sitting on your hands . Knowing when not to trade is as important as knowing when to trade.Screws your mojo up trading muck like this . This is as bad as many summer days the past 10 yrs
We also have potential for a Trump tweet or announcement on the government paying domestic oil producers for reducing their drilling activities. Also, there is the possibility of Treasury Secretary Mnuchin announcing the opening of the strategic petroleum reserve (SPR) and/or the expansion of the reserve. Shorts....be careful.
Oil looks very constructive here . I've noticed traffic on the road the past 7 days has increased big. With the opec cuts who knows. I sure wouldn't be shorting it