So post-Doha there was no agreement from OPEC players, and WTI rallies! Now we are supposed to believe oil-producing minnow Kuwait contributes to 3% slump in oil price just because half of output was cut by a strike.
End of the day, it’s not even good entertainment.
Did the reporter do a consensus poll or he plucked any reason ‘off the shelf’?
Is Kuwait a significant oil player?
You decide. From website Statista.com.
Top 15 crude producers in the world
And then from OPEC’s very own April 2016 report…
Eh so what is the real reason for WTI’s up and down movement?
- It could be any reason. The fact is WTI price for instance hit a 2-month high. It could retrace merely for the sake of profit taking.
- And then there there could be just plainly the regular ebb and flow of demand and supply issues and the movement of USD. Long as DXY continues to fall, expect high probability rally of WTI.
WTI-DXY inverse relationship
- If you like a third option, I could tell you [whisper] any number of conspiracies at work…
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
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"I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."