We create and publish training materials and deal with the research of financial and commodity markets and identification of trading opportunities. We create information content in digital electronic form and its subsequent sale. We are not a stockbroker or broker, we are not financial institutions and we are not a financial intermediary.

7.4.20_Where will the oil go?

ropa

On an unnamed social network (marked F), Mr. K asked me “Where will oil go”. This is definitely a question for many of you who are in the financial markets, so here you can read what I think about it:

Hello Mr. K, with the way it is now set globally, one could say with a clear conscience about the following. The long-standing speculation that you would buy and hold oil is not really a nut at the moment. It’s possible, but you have to reckon with the fact that the energy market is so volatile and fundamentally weak that it could suck $ 8,000 or more out of your account by returning to $ 20 a barrel (which is definitely not excluded). Short-term and intraday speculation, in which the market reacts to current strong fundamentals, could now seem more meaningful. An example is the current rise in the price of black gold related to Thursday’s meeting of the world’s major oil producers and the expectation of a reduction in production. The question, however, is what effect this will have at a time when global demand has fallen by 30% and when the activity of the “half” of humanity is dampened by various regulations and restrictions.

Robert Černík

Comments

Add comment

Your email address will not be published. Required fields are marked *

Your personal data will only be used for the processing of this comment. Principles of personal data processing