The rocket scientists at Goldman Ballsachs have scratched their nuts, taken a look at current WTI prices, and posited that the recent move is completely and utterly out of the realm of rational thinking.
“While oil prices have rebounded sharply since Aug. 1, we believe this move has not been driven by incrementally better oil fundamentals, but instead by headlines around a potential output freeze as well as a sharp weakening of the dollar (and exacerbated by a sharp reversal in net speculative positions),” Goldman Sachs said.
The bank said a proposal by members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers like Russia to freeze output at current levels “would leave production at record highs” and therefore do little to bring supply and demand back into balance.
After today’s drubbing, the price of WTI is higher by 8% over the past two weeks. A move of this magnitude has gotten many “Commodity Kings” to become quite perturbed by the violent manner from which this rally was spawned.
What goes up, must come down.
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You forgot the part where they sniff their finger nails after said scratching.
Off topic, BUT, hasn’t CNBC become UNWATCHABLE? Anyone else sick and TIRED of hearing about the ‘evils of Trump’ while Hillary and her troubles are almost never mentioned??
https://www.youtube.com/watch?v=McboL8iS6IU
CNBC is really best on Mute most of the times. Try Bloomberg, especially during the Asian and European Sessions. Best coverage imho.
nymph +1
Will the stocked market ever go down?
Bubbles always Pop, even Central Bank created ones.
The Saudi’s were able to move the price +$10 on a rumor therefore selling their oil to peripheral nations at a higher price with out ANY change in the fundamental picture. Ain’t manipulation grand.