OPEC crimping supply is curtains for the oil price

The sub-headlines in the overnight OPEC oil news read;

“Dispute between core members blocks deal to boost output”
“Coming days will determine whether the conflict will escalate”

https://www.bloomberg.com/news/articles/2021-07-05/opec-in-crisis-as-specter-of-destructive-infighting-looms-again?sref=qLOW1ygh

I think OPEC’s disarray is NOT a positive for the oil price.

OPEC+’s abstinence of adding supply will see slack (supply) found elsewhere due to the lure of current oil prices and adds weight to my trading call of a temporary peak occurring soon as I wrote in last week’s post.

https://robzdravevski.com/2021/06/28/looking-for-interim-peak-in-crude-oil/

The price of Brent is likely to see a $1 or $2 spike in tonight’s (today’s) session, as the U.S. wakes up from its 4th July holiday break)….

which all coincides with marginal and futile Oil Price upgrades by broking firms to a measly $80.

and if you are establishing a new “long’ position here, you must wonder what last few percent are you trying to squeeze out?

July 6, 2021
by Rob Zdravevski
rob@karriasset.com.au

One Response to OPEC crimping supply is curtains for the oil price

  1. Last nights high was $77.82…before reversing 3.8% to close at $74.93. One day can’t prove the call but surely the trap was set for those believing those broker upgrades.

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