Khalid al-falih abdulaziz of aramco and Prince Sultan have been negotiating for over 7 hours now. Reuters reports , that despite needing to maintain stores levels at home after the largest drop in many months they have no choice but to continue to produce 263,000 gallen's per day for the next 40 days! They continue to feel very reluctant although they imply they cannot have it both ways. they would love all prices to return to a fair $55 plus per gallon which would be very gratifying to them and fair for the rest of the world . THE problem they face is that they can't have high storage levels in the behemoth field and continue to distribute that many gallons most of which goes to the United States alone. Fox News says usual talks behind the hierarchy will continue throughout the entire weekend. they anticipate driving prices back up by late August considering the usual necessary travel and luxury requirements contingent to the United States. Fox News also says the GLUT , has been an obvious Mutual reciprocity like result of the precipitous drop of oil and the sandbagging failed to raise the price in disappointing recent weeks in months , and they bring countries since Saudi Arabia now is the most compelling dominant owner of most of the oil in the entire Middle East.
I sure hope these guys negotiate this that's all I can say because this unfortunate fund is down over 23 and a half percent in the last 5 Years and that's not something to our advantage when it was just a hundred over a year-and-a-half ago how depressing
USO oil fund , FACT despite today's very proud rally still down 12.63% YTD over 34 percent last 3 years! Saudis claim to cut production to obvious manipulate high price as usual but talk from Reuters says Fox News agrees big glut of coming onto market after holiday subsides!!!!
heading higher on a holiday wk, hope ya'll bot calls today
USO $11.05 by Friday
Here is the API report, Oil prices slipped in electronic trading Tuesday after the American Petroleum Institute reported a climb of 882,000 barrels in U.S. crude supplies for the week ended May 12, according to sources. The API data showed a fall of 1.8 million barrels in gasoline supplies, but inventories of distillates were up 1.8 million barrels, sources said. Supply data from the Energy Information Administration will be released Wednesday morning. Analysts polled by S&P Global Platts forecast a decrease of 2.2 million barrels in crude inventories. June crude CLM7, -1.27% was at $48.22 a barrel in electronic trading, down from the contract’s settlement of $48.66 on the New York Mercantile Exchange.
Crude going to $55 to $60 area soon.
This a classic seeelllllllllllllllllllllll the news. It's not production that matters! It's what is shipped and shipping will contiue to increase. Don't you people know the Russians and Saudis are the worlds greatest liars!
This Russian/Saudi agreement is built on sand and just jawboning. Cheating will continue! Tthere is too much debt that needs to be paid now! This really tells you that their cutback policy is a failure and will continue to be a failure. Nothing but lies here and the downtrend in price will continue. This bump up was a gift to shorts!
USO goes above 11 this week....watch and learn
This agreement is nothing but bull sheet! It means oil is going lower, not higher. Watch what they do, not what they say. They are cheating and producing all the oil they can. There is no cutback in shipments at all.
oil is over folks. in 50 years, hindsight will be 20/20. oil's last hooray was in 2009 when it was over $150 a barrel. then not so many years later, it starts it's epic collapse in price, right at the same time the largest generation (35 years old and under), are fully embrasing green technology, at the same time opposing oil, coal, etc. it's not a phase this time, as not only is the alternative technology already upon us, the likes of Elon Musk is single handedly killing oil, and if you have half a brain, it's tough to argue this. everything is against oil right now, and it isn't just a fad this time. just like what automobiles did to the horse industry, so is green tech doing to the oil industry right now. lolz.
If it does where will that put the USO?
I think it is possible that oil will trade at below $20 a barrel sometime in the next 2-3 years.
When looking at the chart for USO, remember to adjust for price decay caused by contango. If oil were to drop to 40, USO would be around 8.36 At 35, USO would be around 7.31 At 30, USO would be around 6.27
This is going to $8
Just wait till July when the dirt and paving contractors are in the middle of all the infrastructure and pipelines coming Man do they burn fuel
USO is dead money, we can see 7 on this.
According to Bashers : OIL IS DONE.... we not gonna need them anymore.