WOW,,,,,,,,,,,,,, all smoke and mirrors..............
OH AND ALGOS..............They really screwed our trading system up.........
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After tumbling all day, oil finally caught a bid with 20 minutes left into the holiday-shortened trading day, when the WSJ reported that Saudi Arabia and OPEC are inching toward a "compromise" between pleasing Trump - who has repeatedly warned OPEC in general and Saudi Arabia in particular not to cut output - with policies that won’t lead to price spikes and "throttling back the flow of its oil to rebalance oversupplied global markets."
According to the WSJ, the "clandestine" solution sought by the cartel: a production cut that doesn’t look like a production cut.
Under such a scenario, the OPEC would announce plans to retain the current output targets, first set during the 2016 Vienna summit. And since Saudi Arabia is currently overproducing by nearly 1 million barrels a day, a reversion to the quotas from 2 years ago would imply a production pullback.
“It will be still a big cut but less pronounced,” a senior Saudi oil advisor said.
Still, it is unclear why Saudi Arabia - which would be the marginal output reducer - would agree to such a deal if, as the WSJ reports, the price of oil won't rise yet the only difference would be a reduction in Saudi output.
Whatever the answer, algos heard enough and sent WTI sharply higher even if doubt appeared to creep back in and oil has faded more than half of the jump already.
http://www.zerohedge.com/news/2018-11-23/oil-jumps-saudis-plan-oil-production-cut-doesnt-look-production-cut?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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