RE: Blimey....Dow Jones11 Mar 2020 19:37
It is good to see Dow steep falls as this tells us that the rebound is not far away!
Yes all seems illogical but it is much deeper than oil..imv
Trump and Crown prince of SA are waging economical war against Russia mainly punishing Putin for wars in ME and his expanding influence there in collusion with Iran and its militias including Iraqi and Huzbellah of Lebanon. This is making SA and many usa allies in the region weak and diminishing usa power and influence there and losing their decades of domination in this vital region. They need political concessions from Putin before sorting the oil price.
Otherwise it is a suicidal act by SA to flood the oil market towards $20 op while their budget requirements by $80 op but SA crown prince knows very well that without USA protection ,he would have gone long time ago. So the deal what usa wants SA crown prince to do ,he will do to protect himself and to stay in power...as he has no body else to protect him now..
But how long will this last? Well Trump wants to win this year elections too and always brags on how good the stock market growth showing off to the electorate the economy and growth is so good under his presidency....so he is more desperate than us to get the stock market back running towards 30000 and avoid recession and disastrous financial upheaval with shale collapse..
But who will blink first.....I think SA after receiving usa orders and Russia will have to give something of a concession...then everyone is a winner or appears so.
Markets then go up and oil price stabilises nicely in every one interest...and sooner than later to allow Trump to win re election.
Coronavirus then suddenly dies down too!
Political showdown....
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