“There has developed a surplus capacity on the production side and the supply side -- the supply side will be reduced in today’s oil prices,” Tord Lien said in an interview in Oslo on Tuesday. “But $40 oil prices? They are clearly unsustainable in the medium- to long-term.”
because the are short:
“Chinese oil demand, which is ultimately what matters for oil fundamentals here, is actually doing fine,” he said. “It’s growing modestly. Nobody was expecting Chinese oil demand to grow 10% or even 7%. It’s growing at about 3% which is actually very fast for an extremely large economy – much faster than it’s growing in the U.S. or in Europe.”
Sentiment: Strong Buy
I totally agree with you but the good news is that the same wall street sharks are going to go long at some point and run the prices to all time highs!
We have seen this movie before!
I am sure OPEC was guided wrongfully by some institution to be more proactive and I agree that wall street is using their creative ways to add fuel to fire.
The margin calls and shorts are also contributing to what OPEC has started!
India just placed an order for 200 Air Bus planes. Do they use fairy dust as fuel?
This has been a coordinated efforts to bring the oil prices down for the last six months.
GS is short oil and they are making a killing making money as people are losing their jobs and money!
and as usual hard working people will lose their jobs!
Also Wall street loves to see people run away from safe dividend paying companies so they can suck them into risky stocks for obvious reasons.
The reports are saying that people have been buying more cars than ever and I was wondering if analysts are recommending fairy dust for fuel!