OPEC's Algiers Meeting

Robert Boslego - INO.com Contributor - Energies

If you are having trouble keeping up with all of the rhetoric in the oil market over the past two months, you are not alone. That’s the oil producers’ basic idea, create as much uncertainty as possible in a bid to scare traders from shorting oil, thereby preventing oil prices from cratering.

Lead-Up to Algiers

Oil prices bottomed in mid-February, following the slide that had begun in June 2014. The trigger was a meeting between energy ministers from Saudi Arabia and Russia, along with a couple of smaller OPEC Gulf producers. They could not agree to a production cut, so they came up with a “freeze” proposal, whereby producers would agree not to increase production further.

Although this would not take one barrel of production out of the market, it was enough to spook traders who had large short positions to cover (buy). Random statements by producers created price spikes, and the resulting “headline risk” cause short sellers to progressively cover more and more positions. The effect was a sizable price rise. Continue reading "OPEC's Algiers Meeting"

Poll: Is crude heading higher once again?

Earlier this week I posted about the crude market and the best indicators (in addition to our "Trade Triangles") for conquering this sideways, but slowly rising, market. Could crude oil eventually head toward or beyond the highs seen in 2008?

Will crude oil reach above the $100/barrel before the end of Q1?

View Results

Loading ... Loading ...

As always instead of just giving my views on the markets, I like to hear our Trader's Blog readers' opinions as well. So after you vote, tell me what you think in our comments section.

Want to hear more about what the "Trade Triangles" and other technical indicators have to say about the energy sector? Click here to enroll in MarketClub's Energy Webinar on Thursday, January 20th at 4pm EST/8pm GMT.