Bullish crude according to the P&F chart:
Some of the talking heads have oil at $70-90 by EOY. IMO, $60 is more likely, with an occasional spike to $70. A $60 handle will make oily stocks in the Texas Permian, and Okie Stack plays fly.
The only thing that can really derail oil is if the OPEC members, and Russia "cheat" on the production cuts recently agreed to. Russia has a history of cheating on past agreements.
Short term, there is a glut in storage inventory which has to be drawn down. Currently US refiners are alternating between oil-gasoline builds/draws. Need to start seeing simultaneous oil and gasoline draws in the US inventory before oil prices get a boost from the low 50s.
Yet to be figured out is the role of US Shale producers in making the US a swing producer/supplier of oil. And its effect on oil prices.
On the side is Chinese demand. They have been building up their strategic reserves on the cheap, with the 2 yr flood of cheap OPEC oil.
It's going to be a green yr in the oil patch.
The Jewel of the Mind is Colored with the Hue of what it Imagines
