Oil Market is Oversold

[thackney]

Oil Market is Oversold
https://www.rigzone.com/news/oil_market_is_oversold-07-jan-2019-157853-article/
January 07, 2019

At current levels, the oil market is oversold.

That’s what Amrita Sen, co-founder of Energy Aspects, indicated in a television interview with CNBC on Monday.

“When the [U.S.] waivers were given we thought prices would correct, but let’s say from $85 [per barrel] go down to $75, maybe $70. And yes, with a little bit of a demand wobble even $65 I could see that, but anything below that has definitely been algorithms,” Sen stated in the interview.

“At current levels, based on current fundamentals, the market is oversold but it doesn’t mean that it’s going to correct straight away … it can still take some time,” Sen added.

Back in November, Tamar Essner, energy director at Nasdaq IR Intelligence, indicated in a television interview with Bloomberg that the market was overreacting.

“Oil markets tend to easily overshoot to both the upside and to the downside,” Essner told Bloomberg in the interview on November 14....

[ABX]

My neighbor who is a land manager for several major companies came home last week and said he will be down for a while and there are about to be a lot of furloughs. The prices have stayed too cheap for too long. This is similar to when the Saudis were dumping oil on the market a few years ago to crash the prices, now it is coming from a lot of different directions. Very cheap oil isn't a good thing for everyone- especially domestic production.

[thackney]

The last time oil did this, it surged 80 percent
https://www.cnbc.com/2019/01/03/the-last-time-oil-did-this-it-rallied-80-percent.html
 4 Jan 2019

We want to see crude oil above $50, says equity strategist   We want to see crude oil above $50, says equity strategist 
2:56 PM ET Thu, 3 Jan 2019 | 03:02
Crude oil could be on the verge of a big comeback.

Since surging to four-year highs in October, the commodity has plummeted 39 percent down to levels not seen since mid-2017.

The last time it saw these lows, it had a massive rally, says Matt Maley, equity strategist at Miller Tabak.

"It got down to the $42.53 level, or $42.50, and that was the low it saw back 18 months ago in June 2017. Now after we saw that low, crude oil rallied 80 percent," Maley said on CNBC's "Trading Nation" on Thursday. "It got right exactly to that level on Christmas Eve and has bounced almost 10 percent since then."

Crude oil now has to clear one critical level for Maley to have faith in this rebound....

[IsailedawayfromFR]

Translation: keep your oil stocks