By DR. KENT MOORS
The market in oil actually forms around the pricing floor and the support level established there – despite what the distortionists try to tell you.
A current WTI trading range of between $42 and $49 a barrel has emerged.
The unusual spread of over 14% is itself a testament to the rapid movements possible in either direction.
There are only two of any consequence (despite what some talking heads on TV want you to believe).
First, concerns remain about that most traditional of all market indicators – supply and demand.
Oil demand has been increasing worldwide.
Few producers will be looking at ramping up extractions until prices are consistently above $55 a barrel.
IEA and OPEC see it rebalancing in the first quarter of next year.
The second overarching factor is the OPEC-Russia commitment to curb production.
Veneuzeula's production looks to have declined over 30% from its levels from only a few years ago.
Source: Oil & Energy Investor
https://moneymorning.com/2017/08/24/my- ... t-artists/