Some have been surprised by the weakness seen in the crude oil market. Traders have unsuccessfully attempted to pick bottoms. I would wait until they have become exhausted and broke. No one in the oil business has cried “uncle” yet. That may take a while. Production is estimated to exceed consumption by 4 mln barrels per day which will not improve if the economy slows. The real economy is slowing. A global slowdown could take a barrel of crude oil to the $30’s. President Trump says he wants gas prices at $2 a gallon. It appears to be on its way there. I filled with E-30 locally this week for $2.29 a gallon, the lowest price in my memory. Actually, not true…the lowest price in my memory was 19 cents a gallon in 1972 at Kerr Megee and you also got stamps to collect for glassware but that was a different time. Oil market weakness is the result of sustained global production driven by cash flow needs of major producers while consumption is declining. 60% of new vehicles sold in China are EVs this year. They want to export their cost of production advantage and expanding global EV market…
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