Looks like the paper traders have done to oil what they have done to gold for 40 years+
https://www.zerohedge.com/commodities/o ... und-trader
Oil pricing
Re: Oil pricing
Key paragraph: "Yet while financial markets remain skittish and continue pressing oil prices lower, the fundamental, physical market has become extremely tight, and as Goldman warned most recently yesterday, we may not be too far from an explosive move higher as the collapse in inventory finally spooks all the oil shorts and the same illquidity that has pushed oil lower sends it to all time highs." < I actually don't want to see "all time highs" over $150/bbl because it will crush consumers and lower demand. However, we can't keep draining the SPR, so a tight oil market may soon become a VERY TIGHT oil market.
As I have posted here MANY TIMES. The "paper traders" control the NYMEX futures contracts and the oil and gas prices investors see each day, the supply/demand fundamentals will eventually impact the commodity price.
I do believe we are at the beginning of a global "Energy Crisis" that will take years to fix. So, my advice is to focus on the macro environment (very tight oil, gas and NGL physical markets) and invest in companies that will benefit from the real world.
IMO the "Right Price" for oil is somewhere in the $90 to $120 range and the "Right Price" for natural gas is in the $8.00 to $15.00 range depending heavily on winter weather in the eastern half of the U.S.
As I have posted here MANY TIMES. The "paper traders" control the NYMEX futures contracts and the oil and gas prices investors see each day, the supply/demand fundamentals will eventually impact the commodity price.
I do believe we are at the beginning of a global "Energy Crisis" that will take years to fix. So, my advice is to focus on the macro environment (very tight oil, gas and NGL physical markets) and invest in companies that will benefit from the real world.
IMO the "Right Price" for oil is somewhere in the $90 to $120 range and the "Right Price" for natural gas is in the $8.00 to $15.00 range depending heavily on winter weather in the eastern half of the U.S.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group