Oil – Negotiation Games Begin

Oil prices fell almost 10% overnight after rallying 37% at the end of last week.

The rally last week was ignited following President Donald Trump saying to CNBC on Thursday that he expected Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman to announce a deal to cut production by up to 15 million barrels, and that he had spoken to both countries’ leaders.

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The meeting was set for Monday and then “by no surprise really”, it was canceled on the weekend and maybe rescheduled for Thursday.

These on-again-off-again negotiations with OPEC are common. We expect a deal of some description to be reached and a production cut should be forthcoming.

Watch oil for a classic “FTFT” technical pattern. We look to buy the dip on this pullback.

30-year graph of oil. 

 

 

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