The OPEC meeting is this Wednesday, and it’s already been loudly telegraphed that they’re going to dial back on production. This has oil futures vaulting higher this morning by 5%.
The futures leaped higher the instant trading opened Sunday and have been tacking on gains ever since, although the mass over overhead supply at present levels should slow the advance.
More importantly, this is simply yet another counter-trend balance that I’m sure will be beaten back in due course. Every single one of these rallies was a total fakeout, and the fake manipulation of normal economics by the OPEC cartel will yield merely temporary relief.
For the moment, of course, energy companies are going to get a relief rally. I suggest watching the gaps formed two Thursdays ago, as that is the first level of medium-important resistance.
