Raghee Horner, futures and trading expert at Simpler Trading, discusses with Kurt Schemers and Don McKelvey on Traders Nation® that traders are looking at oil as a long-term prospect even though oil has slipped in price recently.
Geo-political events bolster the need for oil as OPEC looks to cut production and we’re seeing a deteriorating output from Venezuela that has helped refuel a rebound in oil prices. And, U.S. production is only hampered by the fact that the United States doesn’t have the production capability to refine and transport via pipeline the amount of oil we’re pulling out of the ground.
Lastly, China is putting somewhere around 5% of their GDP back into their banking system. This is cause for great concern as potentially big problems that China and its economy is slowing down. But, China’s long-term oil use and outlook stay in focus as a player on the world oil market.