I was wondering what triggered oil to drop $15 in a rapid selloff some hours ago since i didn’t find any news.
G7 meeting on joint releases of their strategic oil reverses. The US wants 300-400 million barrels to be dumped out of G7 reserves, which would replace 15-20 days worth of Hormuz oil
It is all rigged.
That is why I believe the price of Bitcoin went down so much. I do not own any bitcoin and not exactly a believer.
The problem was obvious with Bitcoin, that there is no intrinsic value to it, and since it kind of exists somewhere out there beyond anyone's control then manipulation is a prime tenant of this financial vehicle.
Seems to me, that after those rumours spread that Trump's son made a bundle off some crypto coin because he knew what his father was going to say in the next hour, Bitcoin has not been the same the last few months as it only went down.
Why own something that is that manipulated?
Oil being down without any real reason, smacks of that same manipulation that Trump did with crypto.
That type of manipulation of a market is illegal. Now it is being normalized today.
That is one interpretation of events.
The other interpretation is that the oil market expects a ground invasion and the risks associated with it.
A market's function is price discovery, and that includes pricing in unrelated risks.
If oil goes back down, then the market believes no ground invasion. If there is no ground invasion, and this missile war is not solving anything, then this whole thing will come to an end sooner or later.
The interesting point about the oil market with this war, is that front months of the oil contract has gone up but apparently the back months did not move much. That shows that no one expects this to be a long war that will disrupt the oil business.
So, who knows.
