It’s a bit after 3 a.m. as I’m writing this here in Abu Dhabi. At least I think that’s what it is. After 16 hours of flights, across nine time zones, and a down day to recover from arriving in the Persian Gulf sick, it’s difficult to tell.
But there’s something you need to know…
When I left the United States on Tuesday, Nov. 15, crude oil had just posted its strongest one-day rally of 2016. WTI (West Texas Intermediate, the benchmark crude rate traded in New York) shot up $2.49 or 5.8% for the day. The rise kept gaining speed as some traders had to unwind their short positions.
That’s been great news for energy investors, as shares across the oil sector have risen – especially in the case of premium U. S. shale producers.
Of course, this has followed a period of weakening oil prices. Even after Tuesday’s monster gain, WTI was up only 1.2% for the week and was still down 8.9% for the month. Now, prices should consolidate over the rest of the week.
But one factor is currently overriding everything else when it comes to the price of oil…
This post was published at Wall Street Examiner by Dr. Kent Moors ‘ November 22, 2016.
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