⛏ Is The Oil Party Over?

Greetings Sunday Couch Potato Contrarian,

This is another Sunday edition, with your most pressing question.

Here we go:

Dear To-oil-or-not-to-oil-speculator,

Your question is shared by many.

When it comes to oil fundamentals, what we see is not necessarily reflected in the price.

In fact, we came across this great video by Shubham Garg and Andy from the Finding Value Finance channel and they answer your question in much better detail than we ever could with our humble keyboards.

Shubham Garg believes that the structural oil bull market is still alive, despite the recent downturn in prices. While price drives narratives, it is not a reflection of demand.

Garg tracks both the physical and financial sides of the oil market but believes that the physical market will ultimately drive the paper market.

Highlights

• 💰 Price does not necessarily reflect demand

• 🛢️ Physical market is expected to drive paper market

• 📉 Open interest decreasing due to low liquidity and high margin costs

• 📈 Demand for oil is recovering due to increased air travel

• ⛽ We need an exaggerated deficit to bring the physical market back in control

Happy watching and happy speculating (responsibly),

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational/entertainment and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.