So about that psychological oil price ceiling of $80 ... Trump's Twitter sledgehammer is right on cue, again

I've commented repeated lately that oil prices seem to have a psychological ceiling of $80 this year.  Every time oil starts getting close to $80 or so, it drops back down again.

So meanwhile, right on cue, Trump has just pulled out his Twitter sledgehammer again and I presume by tomorrow, oil prices will start dropping again.  Will wait and see.

Trump: "The OPEC Monopoly Must Get Prices Down Now!"

Less than three months after Trump's latest tweet slamming OPEC, in which he warned the petroleum cartel that "the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!"...

2018-07-04_14-10-28.jpg2018-07-04_14-10-28.jpg.b56d7e2dd804b552f51dca7feacb7965.jpg

... Trump was at it again and on Thursday morning, the president lashed out at OPEC, saying that the US protects the countries of the Middle East, and warning these nations that "they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember."

His message: "The OPEC monopoly must get prices down now!"

 

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1 hour ago, Tom Kirkman said:

Trump was at it again and on Thursday morning, the president lashed out at OPEC, saying that the US protects the countries of the Middle East, and warning these nations that "they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember."

"we will remember" seems ominous, and eerily similar to "we remember". Interesting word choice.

As much as I find manipulating (or trying to manipulate) oil prices on Twitter despicable on ethical grounds from the captain of a capitalist society that promotes a free market, I have to say that it's somewhat satisfying to see OPEC bested at their own game. Maybe OPEC doesn't use Twitter in the same way, but they certainly use media through "leaks" and whatnot to move prices up or down as they see fit.

Booya, OPEC!

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1 hour ago, Tom Kirkman said:

I've commented repeated lately that oil prices seem to have a psychological ceiling of $80 this year.  Every time oil starts getting close to $80 or so, it drops back down again.

So meanwhile, right on cue, Trump has just pulled out his Twitter sledgehammer again and I presume by tomorrow, oil prices will start dropping again.  Will wait and see.

Trump: "The OPEC Monopoly Must Get Prices Down Now!"

Less than three months after Trump's latest tweet slamming OPEC, in which he warned the petroleum cartel that "the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!"...

2018-07-04_14-10-28.jpg2018-07-04_14-10-28.jpg.b56d7e2dd804b552f51dca7feacb7965.jpg

... Trump was at it again and on Thursday morning, the president lashed out at OPEC, saying that the US protects the countries of the Middle East, and warning these nations that "they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember."

His message: "The OPEC monopoly must get prices down now!"

 

So...as we were discussing...it happened!

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7 hours ago, Rodent said:

As much as I find manipulating (or trying to manipulate) oil prices on Twitter despicable on ethical grounds from the captain of a capitalist society that promotes a free market, I have to say that it's somewhat satisfying to see OPEC bested at their own game. Maybe OPEC doesn't use Twitter in the same way, but they certainly use media through "leaks" and whatnot to move prices up or down as they see fit.

OPEC generally tries to artificially manipulate oil prices higher, for the benefit of their oil producing counties.  Press releases are used, as well as news "leaks", to move oil prices.

Trump is trying counter OPEC artificially inflating oil prices by publicly calling out OPEC's manipulations.

I daresay Trump may actually be better at the oil price manipulation game than OPEC.

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I totally agree with you Tom, I don’t see any tangible reason why Oil would go a higher spot anymore unless your quoted “black swarm”.  Even though it does go higher beyond $80 (WTI), it shall not happen until few uncertainties being cleared out such mid-term election, dollar interest and Iran sanctions, etc.. 

I am expecting to see a more sustained WTI price from $60-$65, hope it would come true. 

 

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6 hours ago, Keven Tan said:

Even though it does go higher beyond $80 (WTI), it shall not happen until few uncertainties being cleared out such mid-term election, dollar interest and Iran sanctions, etc..

The U.S sanctions against Iranian oil on 4th November and then U.S. mid term elections on 6th November will probably be key dates for oil prices, as traders chug pots of coffee and get all jittery and spaz out completely. 

https://goo.gl/images/ZMA1Ze

But things should settle down again shortly after those factors come and go and then play out.

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Totally, I hope that god would gives me a chance to break out. 😂😂😂

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From another article:

"The exercise is part of annual manifestations on the anniversary of the start of the eight-year war Iraqi dictator Saddam Hussein launched against Iran in 1980.

But it also comes after Tehran's recent warnings that it would shut down the Strait of Hormuz if it's blocked from exporting its crude because of U.S. pressure and renewed sanctions on Iran."

Link: https://www.google.com/amp/s/www.haaretz.com/amp/middle-east-news/iran/.premium-iran-s-air-force-carries-out-drill-near-strategic-strait-of-hormuz-1.6492752

 

Comment: So it seems that timing is the key here...traders are playing on fears.

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A poem for the group.

Trump, Trump got to stump for Trump.  The mad kings crazy but he is making me money, more money, I love da money.  It rhymes when your really drunk or have taken 5 hits of windowpane(look it up)!

My advice: Buy put leaps on refineries.  The permian basin oil infrastructure will be in place and then the margins will be far less since the spread will be zero.

Fact: For the last 5 years the Sauds have purchased ~7X more than Iran in raw dollars for their military, not adjusted for headcount.  They are armed to the teeth.  They have started now to buy from Russia missile systems mostly because the US patriot system does not work.  They are playing Trump like North Korea played trump.  That said they want to destroy Iran and would like Trump to pay for it so they flip him carrots.  He likes orange.  After the Nov elections it will be payday if your long on oil and everyone will show their cards.

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Keven Tan

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Totally, I hope that god would gives me a chance to break out. 😂😂😂

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God?  If oil breaks out it will not be because of God.   I am betting on the Devil himself.  He lives in belly button and talks to me, along with red haired lap dog who I might add is sending my a double autographed picture of Stormy Danials my goddess and queen!

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