Oil Prices Tumble Below $100 and Keep Falling. Here’s Why.

[Schism]

Biden just lowered the price of oil by 25% in a month!

Best President Evah!

I know you agree because you clearly think Presidents are responsible for oil prices. You must be a huge Biden fan now.

The man on the news said it was because of the China flu outbreak in multiple China cities.

 

[sanman]

I'm glad the "let's go Brandon" crowd plastered gas pumps with the Biden "I did that" stickers. When prices come down as expected they can say he did that as well. It's simple supply and demand and after all the noise about oil futures that's what it comes back to.

“Meanwhile on the demand side for oil, fears about an aggressive policy response from Beijing to China’s Covid outbreak has raised the prospect of a much weaker demand for oil from the world’s second-largest economy,” she adds.

Ohhh - you're happily pointing to falling economic activity as your bright hope for lower oil prices.

"Hey guys! The food shortage is over! Because thanks to the famine, more people are dead, and therefore less people needing to eat food!"

The towering intelligence - it overwhelms me.

Technical factors are also clearly at play. Traders had come into March holding aggressive long bets on oil that would pay off at futures prices above $100. There is evidence that many of them sold out of positions when oil spiked. Open interest in oil futures is now at the lowest level in six years, according to Bloomberg.

An oil market momentum indicator known as the Relative Strength Index, which measures price changes, has fallen to the mid-40s from highs above 80. Generally, a reading above 70 indicates that an asset is overbought.

Oil Prices Tumble Below $100 and Keep Falling. Here's Why.

"There is some fundamental reasons here, there's geopolitical reasons here, but positioning is also having a big say in where this market is going," says Robert Yawger, director of energy futures at Mizuho Securities.

www.barrons.com

 

[jcgriff2]

I'm glad the "let's go Brandon" crowd plastered gas pumps with the Biden "I did that" stickers. When prices come down as expected they can say he did that as well. It's simple supply and demand and after all the noise about oil futures that's what it comes back to.

“Meanwhile on the demand side for oil, fears about an aggressive policy response from Beijing to China’s Covid outbreak has raised the prospect of a much weaker demand for oil from the world’s second-largest economy,” she adds.

Technical factors are also clearly at play. Traders had come into March holding aggressive long bets on oil that would pay off at futures prices above $100. There is evidence that many of them sold out of positions when oil spiked. Open interest in oil futures is now at the lowest level in six years, according to Bloomberg.

An oil market momentum indicator known as the Relative Strength Index, which measures price changes, has fallen to the mid-40s from highs above 80. Generally, a reading above 70 indicates that an asset is overbought.

Oil Prices Tumble Below $100 and Keep Falling. Here's Why.

"There is some fundamental reasons here, there's geopolitical reasons here, but positioning is also having a big say in where this market is going," says Robert Yawger, director of energy futures at Mizuho Securities.

www.barrons.com

Well of course it is going to decrease -- just look at historical data for proof.

 

[Threegoofs]

The man on the news said it was because of the China flu outbreak in multiple China cities.

Yes, but you know better- Presidents are in charge of global oil prices.

So celebrate Biden and his great accomplishment!

 

[HangLow]

I'm glad the "let's go Brandon" crowd plastered gas pumps with the Biden "I did that" stickers. When prices come down as expected they can say he did that as well. It's simple supply and demand and after all the noise about oil futures that's what it comes back to.

“Meanwhile on the demand side for oil, fears about an aggressive policy response from Beijing to China’s Covid outbreak has raised the prospect of a much weaker demand for oil from the world’s second-largest economy,” she adds.

Technical factors are also clearly at play. Traders had come into March holding aggressive long bets on oil that would pay off at futures prices above $100. There is evidence that many of them sold out of positions when oil spiked. Open interest in oil futures is now at the lowest level in six years, according to Bloomberg.

An oil market momentum indicator known as the Relative Strength Index, which measures price changes, has fallen to the mid-40s from highs above 80. Generally, a reading above 70 indicates that an asset is overbought.

Oil Prices Tumble Below $100 and Keep Falling. Here's Why.

"There is some fundamental reasons here, there's geopolitical reasons here, but positioning is also having a big say in where this market is going," says Robert Yawger, director of energy futures at Mizuho Securities.

www.barrons.com

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