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?
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