"Oil/Emike, Bert – Yeah but it's the same thing. FUNDAMENTALLY we knew the Saudis would do something to support $60 on /BZ due to the Aramco deal. Last summer they pulled the deal but now they are too far along so their only option is to do SOMETHING to boost the price.
Oil (/CL) right at $55, Gasoline (/RB) coming off $1.55. Brent (/BZ) $60.33 should hold $60 so /CL is not a bad long at this line over the weekend – maybe something will blow up? "
And THAT is how you make $5,000 PER CONTRACT trading oil into the weekend!
In our Live Memeber Chat Room, we are not conspiracy theorists – it's simly that we have observed many, many times that, when the Saudis need to boost the price of oil (and they desperatately needed the price highers as the Aramco (state-owned oil company) IPO is looming), things tend to blow up. Whether it's Nigerians attacking a pipeline or Iran or Houthis (who are taking credit for the current attack), we call them "Rent-A-Rebel" as they are perpetually on-call to jack up oil prices off key supports.
Creating a sense of unease in the supply chain is a great way to jack up the Futures and jacking up the futures by 10% is a $100-200Bn payoff for the valuation of Saudi Aramco – that's enough money to make even Dr. Evil stand up and take notice. Do you think the Saudis are above sacrificing a few men for that kind of money? Jamal Khashoggi would certainly tell you otherwise.