Key oil market participants looking for decline in prices

Yesterday oil hit the very important level of support, which is the reason for recommendations for its sales in itself.

We’ve already noted that October was the worst month for oil over the last few years, what was linked both with an increased supply in the oil market and the slowdown in the growth of demand for oil in the world. According to the start of November, oil is waiting for another difficult month, and we recommend using it to earn.

Today we want to pay attention to another interesting moment. Precisely, to the behavior of the key oil market actors. Mexico, which is among the ten largest oil producers in the world in 2018, spent about $1.2 billion on hedging oil supply prices. The government fears a decline in oil prices and is strongly ensuring its exports. Recall, in 2009, after the financial crisis, Mexico received $5 billion from the oil price hedging program. It also received a solid reward from the risk hedging program in 2015, has earned $6.4 billion from a drop in oil prices quotations. And in 2016 - $2.7 billion. Means, the Mexicans feel the oil market very well and manage their risks extremely successfully.

We consider this is as another indirect signal, which confirms true to our trading idea - longterm sales of oil.

Among other news reaffirming our position it’s worth noting that Russia expressed its willingness to the new post-Soviet’s records in terms of oil production (the current level has already reached 11.4 million b/d), as well as a signal from the United States that some countries will be able to buy Iranian oil without affecting (which partially alleviates market fears about the effect of the US sanction against Iran on the oil market).

Well, keep selling the oil and make money on it.