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- Trump’s tweets will not break OPEC
Trump's tweets will not break OPEC
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Loading...Petroleum exporters will not be allowed to be outplayed in their territory
Типично. Искате да организирате приятелска среща в Абу Даби, да се намери общ подход към стабилизиране на цената на петрола с прес - конференция и коктейл накрая? Чудесно, докато Тръмп не се появи.
Typical. Want to organize a friendly meeting in Abu Dhabi, find a common approach to stabilizing the price of oil with a press conference and a cocktail eventually? Great, until Trump did not show up.
The reaction?
Even so, the fragile promotion that "black gold" had at the beginning of today's trade was erased and overwhelmed by the resumption of sales, and the bears once again took control of the price.
As we can see, Trump does not fail to comment on social networks to reflect the price of oil.
But why should we look for something more here? The US president may have just wanted to react to the news that Saudi Arabia, along with OPEC, are planning to cut production. When it comes to important political or geopolitical decisions, it is good to already mean the so-called Tweetrisk.
Hedge funds continue to unload their oil positions at the same time.
Reducing speculative optimism is most striking when we see the ratio of long to short positions in gas and oil futures.
The difficult task for OPEC will be to return that money back to the market. For the time being, however, there is speculative war on rhetoric in social networks between producers and the president. But there will be a moment when manufacturers will have to support words with actions and take the claimed reduction in output if they want to take control of prices and the situation as a whole again.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov Read more:
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