OPEC meeting on Thursday is the big story of the week
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or will this be a GRAVY TRAIN wreck……………
olive oil would be a better trade……………..
GOBBLE-GOBBLE.
At least on Thursday!
Oil topped out mid June @ $107 just as the US$ bottomed @ 79….as oil fell 30% the $ rose 9+ cents. The currency markets are valuing ALL commodities not supply and demand, so OPEC cuts production a knee-jerk reaction is the norm just as the commodity markets popped on Fri with China’s news yet today they are giving back those gains…pops are pops….one must invest off trends…..China cut as they too are dealing with global economic growth as Japan enters another recession and Europe flat lines. DEFLATION at work
OFF TRENDS……….think outside the cage…….I think shorting TURKEY FEATHERS….there seems to be an abundance of feathers occurring this time of the year. Hams are next…………go long pigs………..ootb…………
There is an interesting article on http://www.marketoracle.co.uk this past weekend where the author says that the Saudis needs to update their aging sea oil-rigs. A high oil price means that it is expensive to hire the rigs and crews to do this but that at 60 bucks for oil it saves the saudis billions and billions to update their infrastructure.
Thanks Bob, that is an interesting observation!
Quite plausible…and perhaps chilling for the markets, when some of the most leveraged shale producers start missing interest payments, etc. if oil does move that low.
Here is the article if anyone is interested or whether anyone knows if it makes sense:
‘Why Crude Oil $80 Is the New Normal, Reasons Saudi Arabia Will Not “Swing””
The BIG DEAL THIS WEEK ……..IS…………..THANKSGIVING………….all the turkeys will be on holiday.