Oil is plummeting in recent weeks. The Suadi's are putting pressure on Russians for not complying with OPEC production targets , and have ramped up supply. Put this into the context of the US-China trade war and the global effects on all economies with the Covid 19 virus and demand diminishes.
It is obvious that current price is haemorrhaging money out of The Kingdom and Putins back pocket.
"National prestige is involved here, honor is involved and political power is involved. And political leaders will suffer costs in a war if they believe they are pursuing a greater and more important aim,”
You can only loose so much and a political financial pain point must exist.
The chart offers some clues from 1986 and 1999 , that $ 10 a barrel should be this point and a place to consider buying into oil.
Look for entry
1. Enter - $ 10 - $ 11
2. Stop - $ 5
3. Target - $ 40
RR = 6
It is obvious that current price is haemorrhaging money out of The Kingdom and Putins back pocket.
"National prestige is involved here, honor is involved and political power is involved. And political leaders will suffer costs in a war if they believe they are pursuing a greater and more important aim,”
You can only loose so much and a political financial pain point must exist.
The chart offers some clues from 1986 and 1999 , that $ 10 a barrel should be this point and a place to consider buying into oil.
Look for entry
1. Enter - $ 10 - $ 11
2. Stop - $ 5
3. Target - $ 40
RR = 6