"The recent run-up in crude prices to $60-plus from under $40 earlier this year isn’t necessarily evidence that the economy is recovering", Exxon Mobil Chairman and CEO Rex Tillerson said Wednesday.
"Oil demand remains down while supply is robust amid the lingering global recession, so those fundamentals don’t support crude’s slow uptick."
The weak dollar and “green shoots” — initial signs of a stabilizing economy and market momentum — could be contributing, but oil traders’ optimism is “just a bet on their part,” Tillerson said after the company’s annual shareholder meeting.
But without change to fundamentals, Tillerson isn’t betting. “I think it’s too early to call this economy,” he said.
But with the market this strong even the most bearish oil traders like myself are beginning to have second thoughts. But like Pit Bull Marty Schwartz wrote in his fantastic trading book, "When it gets so bad that you want to puke, you probably should double your position". I am not there yet, not even close. But this rally is giving me a major headache. I have to keep my calm, because I want to double up that position and make a home run on the sell off. But I will seat on my hands for now...
Petroleum Oil Gas info Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage. Trading is not as hard as some think and definitely not as easy as some wanted it to be.
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment