Crude oil has thrown up its hands—there’s nothing it can do. The price just can’t be pushed down because someone is deliberately sabotaging things.
Iran, that underhanded actor, is using the Houthi forces to target Saudi crude oil.
Meanwhile, it’s hiding at home and laying sea mines near its doorstep in the Strait of Hormuz.
That means tankers can’t pass by its doorstep, and Saudi Arabia can’t ship oil out either.
The amount of crude flowing through the Strait of Hormuz keeps shrinking by the day. Tankers taking the longer route cost more, and still can’t make up for the needs of crude-importing countries.
When something is scarce, it becomes valuable, so crude prices won’t come down. We can only wait for tonight’s U.S. crude inventory report. I don’t think it’ll look very good; the reported draw could be somewhere between 2 million and 4 million barrels. That would be bullish for crude, since inventories would be tight.
Tonight, try placing short orders on CL crude between 103 and 105. They should get filled. Shorts entered at that price should be relatively safe, with very little risk.
Iran, that underhanded actor, is using the Houthi forces to target Saudi crude oil.
Meanwhile, it’s hiding at home and laying sea mines near its doorstep in the Strait of Hormuz.
That means tankers can’t pass by its doorstep, and Saudi Arabia can’t ship oil out either.
The amount of crude flowing through the Strait of Hormuz keeps shrinking by the day. Tankers taking the longer route cost more, and still can’t make up for the needs of crude-importing countries.
When something is scarce, it becomes valuable, so crude prices won’t come down. We can only wait for tonight’s U.S. crude inventory report. I don’t think it’ll look very good; the reported draw could be somewhere between 2 million and 4 million barrels. That would be bullish for crude, since inventories would be tight.
Tonight, try placing short orders on CL crude between 103 and 105. They should get filled. Shorts entered at that price should be relatively safe, with very little risk.