LSC – Light Sweet Crude Oil

Oil futures are at an important bottoming area. A short-term bounce seems probable. But my lower for longer theory on oil prices remains intact.

Back in the Exxon Mobil article titled 2/25/2017 – Exxon Mobil (XOM) & Lower for Longer I illustrated that oil was “correcting its previous downtrend” and was not in a real uptrend. Oil futures turned at the higher of the 2 areas I identified in that article and have been on a downward spiral again since. After a short rebound, I think there is a chance for oil futures to continue lower again still and re-test and break below its previous low $26.05 back from February 2016.

Why would a Saudi Prince want to sell his oil reserves and cash out by going public? It all goes along with my theory of too much oil is in the ground and demand could be getting softer. Cash out now and take the money. Why would a prince rather lose control of a commodity and cash out? It doesn’t make sense really unless I think about it in a cash out context. This way he doesn’t have to wait until it is pumped from the ground to make his money. Cash out and become public. Take your money and run.