Some countries (i.e Malaysia) are making a smart move by pegging the retail oil price when crude oil was at around peak of wave 4 of C. That will bring extra revenue for the country at times of turbulence (but at the expense of the people).
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Sorry for not updating about the alternate bullish count for Crude Oil earlier. I'll update on the new count only if price breaks 72.83 because 72.84 is the invalidation point. However, price might also retrace a bit before breaking 72.83.
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Invalidation point HIT! I'll reassess my count soon.
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The current rally might be wave 5 of C of 4. The ultimate invalidation of this bearish count is when price break above 74.95. As for now, there's no confirmation yet.
thanks for updating your view. pl also publish short term idea on 4h
tbuckle
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Yes, I understand now what you are saying. Thanks.
tbuckle
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What do you mean when you say they were pegging the retail oil at wave 4 ($72.89). Do you mean that they were shorting it so that in any fall they would make money? How does this bring expense to the people. Doesn't it help them by lowering oil/gas price and making the government money? Just trying to understand. Thanks for any reply.
TheDemonTrader
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@tbuckle, Previously in Malaysia, the retail oil price fluctuates on weekly basis based on the global oil price. They have a formula for that. When the new government took charge recently, let's say, they've pegged the price of retail oil to be RM2.20 per litre. That was when the global oil price was around the top of wave 4 of C (USD72.83). Logically, by using the weekly fluctuation formula, the retail oil price in Malaysia should be reduced by today because the global oil price had fall. But it did not. This is because it is pegged when the global oil price was at the top.
By doing this, the government will have extra revenue from the people paying for the retail oil itself. It doesn't matter if the global oil price plunges.
I hope my understanding and explanation is correct. If anyone thinks I'm wrong, please correct me. Thanks! :)