Oil Slide Worries Traders. *relax* This Should Get Sorted by Year End.

If anybody here hasn't heard my hundreds of ad nauseum comments this entire dang year about my hope for $65 oil [Brent] for 2018 and my hope for $70 oil [Brent] for 2019, please raise your hand, and I can reiterate yet again.

Meanwhile, I'll gently remind that I already warned repeatedly this year that $80 is simply not sustainable, and that the higher that oil goes above $70 then the harder the eventual crash would likely be.

And over to the news, would everyone kindly lay off guzzling the pots of coffee and stop artificially panicking.  Near as I can tell, $70 - ish oil for 2019 still seems about the right balance between the global economy and oil producers.  I hope the current over-reaction on the oil price See Saw will settle back to around $70 by end of this year or early next year.  Just my opinion; as always, you are free to disagree.

Anyway, after all my blathering, here's the Australian Financial Review for you to consider:

Oil slide rings alarm bell for global economy

Another collapse in the oil price late last week is sending worrying signals about the health of the global economy, with the picture for the commodity further clouded by supply and demand trends and the US President publicly backing lower prices.

By the end of the regular trading session on Friday, West Texas Intermediate crude had dropped 7.7 per cent to $US50.42 a barrel, while Brent crude fell 6.1 per cent to $US58.80 a barrel.

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I think it largely depends on the grip that Trump has over the Saudi Crown prince. If he holds him by the neck because of the Khashoggi case, then the price will keep going down.

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Couple months ago, news, investors, markets, and all oil related traders had a fear of oil which could be over $100, and someone even said it could be over $200. 😂  what happen now? Now it’s totally opposite, ppl start saying that oil will drop as lower as $30-ish. 😂 

I learned a great lesson from Tom, regaless fundamentals and geopolitics, it is all about sustainability. 

This uocoming G20 meeting will not significantly solve the problem, but will be softened. Stockmarkets will rebound and may continually climb higher in 2019. Oil will be back a more stable price around $70-ish as well. 

We ll see. 

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6 hours ago, Keven Tan said:

Couple months ago, news, investors, markets, and all oil related traders had a fear of oil which could be over $100, and someone even said it could be over $200. 😂  what happen now? Now it’s totally opposite, ppl start saying that oil will drop as lower as $30-ish. 😂 

Relax  : )   

And try reading the latest from Nick Cunningham:

$50 Oil Puts Shale To The Test

As the WSJ notes, the shale industry is in the midst of putting together drilling plans for 2019. Up until now, very few industry insiders or analyst forecasts had prices falling below $60 per barrel next year. The recent plunge could force a rethink. If the industry goes in a more conservative direction, shale output might not grow as much as previously thought.

With all of that said, OPEC+ could put an end to the latest slide in prices as early as next week. Rumors of a large production cut began circulating a few weeks ago, and the lower prices go, the more likely it is that the cartel will take action. At this point, with expectations of some sort of action largely priced in, inaction would likely drag prices down much farther. As such, it seems highly unlikely that OPEC+ will do nothing.

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