The Golden Cross
Posted: Mon Aug 30, 2021 6:34 am
Traders do look at technical chart stuff like this, so it can become a self-fulfilling prophecy.
My belief is that FEAR of the Delta Variant is the only thing keeping a lid on the price of oil. Global demand for oil exceeds supply today by over a million bpd and within 12 months all of OPEC+ spare capacity will need to be back on-line. When that becomes the new "Paradigm" the price of oil will go over $100/bbl.
I expect OPEC+ to stick with their plan of increasing supply by 400,000 bpd each month until all of their spare capacity is back on-line. Keep in mind that 2/3rds of the countries in OPEC+ are already at full capacity.