Is an Oil Spike Coming?

Is an Oil Spike Coming? The general consensus on the street has been bearish on Crude since the US became a self-reliant energy producer and exporter. This, coupled with more energy-efficient vehicles may have subdued demand and brought oil prices down to multi-year lows (currently $49.00). While Russia does not want to cut production, increasingly many OPEC nations are considering it, resulting in supply uncertainty. To top it off, latest US rig count data showed an increase in rigs. We would like to propose a somewhat contrarian view relative to the street; namely that Oil may be due for a spike and we do stress 'may' as it is a volatile asset and one that is subject to a range of global macro-economic and political variables. Our reasoning, however, is predominantly based on chart technical analysis. Looking at the weekly chart since 2006, the hedge-fund driven oil price spike surrounding Lehman Brothers in 2008 marked the multi-year high for the commodity when prices reached $147.00 for a few hours. This resulted in a stochastic and RSI peak followed by a very sharp drop off, mainly driven by a global economic slowdown. Over the years as the economies recovered, oil did too reaching a post-Iraq "new normal" of over $100… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,868.96, an increase of 9.81 points. The FTSE 250 rose 112.36 points to finish at 17,871.04. The FTSE All Share climbed 8.46 points to finish at 3,740.27. The FTSE AIM All Share finished at 784.29, up by 3.77 points. Home improvement retailer Kingfisher (KGF) said that sales climbed by 8.4% during the three months ended 31st July as reported sales at its overseas operations grew quickly and the company benefited from strong trade demand in the UK. The disposal of B&Q China was completed after the deal received regulatory approval and £63 million in net cash proceeds have been booked. Management said that the Brexit vote has generated uncertainty but that there has been no impact on demand to date, while widespread industrial action in France has proven a drag on results. The shares rose by 6.70p to 364.70p. Get our August issue while it's Hot! Click HERE to read. Miner and steel producer Evraz (EVR) saw its EBITDA for the first half of 2016 plummet by 38% to $577 million (£438.4 million) due to the effects of weak steel pricing. The company managed to cut costs by $138 million (£104.85 million), but time lost due to injuries rose by 28% due to more transparency regarding minor injuries. The firm expects steel prices to gradually rise during the second half of the year with a corresponding improvement in results. The shares plunged 11.22% to 153.40p. Travel agent Thomas Cook (TCG) has signed a new hotel sourcing agreement with a leading digital travel services provider. This is an extension of an already successful partnership between Thomas Cook and Webjet in the Nordic regions and will substantially increase the diversity of options available to Thomas Cook's customers while allowing the company to focus on growing the other aspects of its business. The shares climbed by 7.07% to 65.85p. Tomorrow's news today The latest UK public borrowing figures will be released tomorrow morning. Quote of the day "To be successful, you have to have your heart in your business and your business in your heart." - Thomas J. Watson Latest Stories Chart of the day: Sound Energy By Zak Mir It would appear that Thomas Cook has been in the news for all the wrong and tragic reasons in the recent past, as the tourism industry was hurt by the ravages of terrorism… Click Here To Read The Full Story Is Kibo Mining's Joint Venture All It's Cracked up to Be? By John Cornford I promised to update on Kibo Mining when it published details of its joint venture with an adjacent gold miner to monetise its gold assets in Tanzania's Lake Victoria gold fields – in order to add to whatever value emerges in its Mbeya coal to power station project… Click Here To Read The Full Story Is British American Tobacco's Brexit Bounce Over? By Robert Sutherland Smith BAT's sales and earnings are on the rise again. However, the shares are full of profit given that the share price has risen by a third over the last year. By past standards the shares do not look particularly cheap… Click Here To Read The Full Story The Storm Clouds Are Gathering By Victor Hill If you have any exposure to the major (or indeed minor) European bourses, prepare for turbulence. 2016 (with an epilogue in 2017) could turn out to be another 1848. That was the year that virtually every major European state succumbed to revolution, and the continent, as Karl Marx observed, passed into a new era... Click Here To Read The Full Story Chart of the Day: FTSE 100 By Zak Mir It always concerns me when the mainstream media, in the form of financial journalists, start doing their own technical analysis/charting. Usually it concerns Heads & Shoulders, or Golden/Dead Crosses, but the latest manifestation is the RSI on the FTSE 100 hitting "overbought."… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news straight to your inbox. Once Weekly Round-Up Our mailing address is: Suite 88, 22 Notting Hill Gate, London W11 3JE Master Investor is a trading name of Master Investor Limited. 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