Is the Obama announcement bearish for oil?

Over the weekend the Obama administration announced extending and increasing the frequency of drilling leases. You can read more here.

First, I am glad it happened when the market was closed.  Secondly, was this move priced in? Oil has come off its highs and rapidly.

Goldman Sachs came out with a bearish call on oil about a month ago.  I could not remember the date so I did a simple google search.  The second most relevant search came up with a second date October 12th 2008. They were right but they also missed the top by $65.

I did not point out the drop in prices and announcement because I think their is a conspiracy, this is not zerohedge. But if they were talking their book and started to get short or flat around these prices a month ago. I do not remember 2008 specifically around their announcement but selling highs and selling lows are traded differently.

I do not trade oil so I am less interested in the price of oil and more on how the money is flowing. Will this news along with the $XOM CEO saying prices should be $60-$70 a barrel effect equities. Interview below.

I do know yet. There is something changing in this market. These moves have ended some careers and/or significantly dented some fortunes. We are in some sort of shift or may be it is another false attempt.

What do you think?

We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121, email info @ traderhabits (dot) com or twitterstocktwitsyoutube and facebookSubscribe to Traderhabits by email or to newsletter.

The services and materials provided should not to be interpreted as investment advice, an endorsement of any security, commodity, future, or personal investment advice, or an offer to buy, sell, hold or trade futures, options or commodity interests or a recommendation to buy, sell, hold or trade futures, options or commodity interests. You assume the entire cost and risk of investing and are solely responsible for any and all gains and losses, financial, emotional, or otherwise, experienced, suffered, or incurred by you.

Read previous post:
What skirt length tells about the stock market.

Interesting take on skirt length and the stock market. The argument goes that short skirts mean tops are in and...