Monday, December 12, 2016

Oil Had Better Hold Up For Saudi Arabia, Otherwise It's A Screaming Short

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Saudi Arabia is aggressively trying to get oil prices higher.

We think that their "break-even" of about $67 is their first target. We'd guess though that they don't want to just break even.

They are proving that they will pull all stops to get oil higher. It better hold and go higher otherwise there is big downside to oil prices.

We wrote yesterday that Saudi Arabia ("KSA") is aggressively trying to get oil prices (NYSEARCA:USO) to hold above a key price level. We'd guess that any hint of weakness is now going to wake KSA to attempt to jawbone oil prices higher. Their first target is probably around $67 which the IMF reports to be their "break-even" price. They probably have their sights higher hoping to get oil back to $100. That said we're watching "action." If oil prices fail and goes back down oil could be a screaming short. Let's watch together.
Desperate KSA
Source: Interactive Brokers

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