Im taking a look at the oil charts this a.m. after another attack in the middle east. An Iranian oil tanker has supposedly been attacked and nobody has yet to claim responsibility. People are pointing the finger at Saudi Arabia and claiming Saudi likely did this in retaliation to an attack on their oil refining facilities approx 3 weeks ago. Oil is such a volatile trade at times. But the thing is there is an organization called OPEC that is a cartel that blatantly changes the oil prices to suit the members of the cartels immediate needs and wishes. This makes oil a bit more controlled than things like Bitcoin. I work in the oil industry and when oil is cheap our work load is low. When oil rises our work increases a lot. While I dont want to see a war I will take higher oil prices and smile. I dont need the over time at the shop but a lot of my coworkers really depend on that time and a half and they just cut our hours to 40 max so if oil can go up it will make everyone at my shop happier... Not to mention the Xmas bonus will likely be better if oil is a bit higher. Off shore is still dead in the water (no pun intended :) until we see oil prices get above 75 - 80 a barrel Im afraid we will continue to see off shore take a back seat. Its just too expensive to extract oil off shore and the profit isnt there until we surge above 75 -80$. I remember when oil was booming our off shore customers were ordering so much we had to make a night crew and devote entire departments to making off shore parts. Oil is about half the price it was back then. If we continue to see "tit for tat" attacks in the middle east oil will be front row center to the mayhem. Iran and Saudi both produce a lot of oil and oil is the life blood of both countries therefore they will likely both target each others capacity to drill and sell oil. Whether it is an attack on a refinery or an attack by sea via mines volatility will likely be the result. Iraq is smack dab in the middle of the 2 countries and may have oil production slow as well in the event of a war or even a scuffle. Kuwait may suffer as well as they use the straight of Hormuz to transfer a lot of their oil and that straight is one of the first targets of Iran every time there is a conflict. They set mines all over that straight. Same old song and dance. If war does become a reality it will be a somewhat proxy between the US (backing Saudi Arabia) and Russia (backing Iran). Meaning this could get pretty ugly if there is a war. One thing we can pretty much bank on is if there is a conflict oil prices will rise as a result. Im not telling you to buy but if you plan on investing in oil what are you waiting for?
Looking at this chart you see that the fan I put on the chart ages ago is working like a charm. I highlighted the areas with a white line where the fan was acting as support or resistance and any fool can see that the speed fan is a great tool. We rose a bit recently only to be rejected by the daily cloud. The 50 MA is buried right in the middle of the cloud as well so it may be a tough feat to climb above the cloud at this time (unless a war breaks out which seems more and more likely with each small attack) The orange line on the chart has been a key area of support for a good while. I drew it on there a while back and have yet to remove it due to the fact it is still valid. Just keep your eyes on the news coming from the middle east. We could see oil sky rocket if a war does break out. But WTFDIK?
Looking at this chart you see that the fan I put on the chart ages ago is working like a charm. I highlighted the areas with a white line where the fan was acting as support or resistance and any fool can see that the speed fan is a great tool. We rose a bit recently only to be rejected by the daily cloud. The 50 MA is buried right in the middle of the cloud as well so it may be a tough feat to climb above the cloud at this time (unless a war breaks out which seems more and more likely with each small attack) The orange line on the chart has been a key area of support for a good while. I drew it on there a while back and have yet to remove it due to the fact it is still valid. Just keep your eyes on the news coming from the middle east. We could see oil sky rocket if a war does break out. But WTFDIK?