US oil offering a discount for stock reserves, but they won’t turn oil prices around.


Support for the US Oil market from low prices

=Support for the US Oil market from low prices
The US topped up its strategic reserves on Friday temporarily boosting oil, but oil was soon sold off as soon as the market re-focused on all the weekend headlines as COVID-19 spreads unabated. Central banks have tried cutting interest rates, Gov’t’s have tried fiscal stimulus, but this is a medical problem which needs a medical solution. The falling demand will keep oil pressured on any retracements.  

So, a couple of things to watch for oil. Firstly, if China decide to stock up their reserves then expect a similar spike in oil as when the US topped up their reserves. If you have a news squawk then keep it on. Secondly, expect any spike to be sold into as the main issue remains – demand falling as the entire globe stops moving fluidly on these coronavirus fears. 


I still like the potential of some oil bargains and still have pending orders down at $11.50 now. Check out my article from last week, still relevant today. 

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