Oil just made new lows as predicted. Time to get on board of a fine trend if you haven’t done so already.
The oil market saw new price lows during the last days. There seem to be two main reasons for that:
- Iran closed the nuclear deal with world powers and is now on the brink of increasing oil exports.
- Global competitors still want to crush American shale production companies with low prices and drive them into bankruptcy.
The long-term reason for low oil prices, of course, is the shale miracle that levitated the US to net exporter status after decades of importing. It looks like one of the world most rare goods is at a high supply at the moment despite an also increasing demand.
Crazy world. Somewhere in the future this will turn around and backfire. But for now and into 2016 the market bets on an oil glut.