Speculators think a border tax on crude imports by Trump will spike oil hard. http://seekingalpha.com/article/4040540-lots-oil-bulls They think they're clever and that no one else sees it.
They are the suckers financing long term shale hedges. Can't wait til they all wake up simultaneously and crash this fucker.
I was wondering about that to, now with the pipelines signed and Trump calling for more drilling and such... From research for MP I learned that Russia is increasing production massively as wel. while we got traditional energy in an abundance like never before.. the price is bound to stay low.
Would a border tax not just bump oil prices in the USA and let them stay low globally?
Whatever the tax rate on oil imports to the US, that should be the spread.
This is the biggest bubble I've seen since the house price bubble months of the US housing boom in late '06. The US only imports 25% of its consumption and is probably sinking again since US consumption is down 6% vs last year, and US production is skyrocketing.
This tariff mania may break some funds if they can't get out before holders unload on the spot. There is a fuck ton of futures barely holding the price up that will turn into large, instantaneous losses relative to what they're marked at.
Just wondering what the cause of this is? Hasn't the oil price been dropping like a stone over the last 1 - 1,5 years?
Guessing it has to do with the tension from Trump towards Iran and uncertainties about the future of the ISIS conflict. But then again I don't know the market.