production is down. trade oil is not about supply and demand. There are too many variable. it could weather, geopolitical, war.
it shot up because U.S. EIA release a report said the peak production was 9.6 million barres a day in April. Not the 9.7 million barres that was previously reported. And the monthly reports shows the production drops to 9.3 million barrels a day.
"Canadian Oil Sands Ltd. said Sunday that it halted production at the Syncrude oil-sands project due to a fire at a processing facility.
The company didn't estimate the volume of lost production. Syncrude's output averaged 207,700 barrels a day in the second quarter. "
very few countries or companies is selling market price. Buyers may not care how cost of goods, but sellers sure do care. They won't be welling to produce as much good if the sell price is lower than cost. Rig counts in US has been drop from 2000 rigs from a year ago to under 900 rigs now. OPEC is producing more to kill of rest, then the oil will shot up again. We will see if we see $20 or $60 first.
you don't know what are you talking about. Do you even know what USO does? All it does is long oil future.
even if buy all the USO shares, it's only worth 2.6 billions. Not enough for the big games. if you want to long or short oil, the best way is to do it is from oil future.
it still matter. if the rig count up today, it will probably give some back. If it drops huge like 20 to 30 rigs, it may go up by 3 or 4 dollars today.
dumb. Long until it hit 43.50 is a better suggestion, then close out your positions. I think this think can easily go to 45.