Oil market is getting ‘Bublicious’ – IB Times

Gaurav Sharma, Oil Analyst at IB Times dissects the OPEC accord and oil price action which would convince viewers that market is getting ‘Bublicious’. He is joined by Tip TV’s Zak Mir.

Each time prices near $40.00…one of the major producer props up prices, while around/above $50.00 the oversupply problems become garner market attention again, says Sharma while explaining the pattern seen in the market over the last few months.

He goes on to answer view question on whether to invest in commodities and what sort of strategy they should adopt to play oil markets.

Key quotes:

Stay away from commodities as it worst performing asset class if we take out silver, and oil is the poster child

Strategy to play oil market – remain net short for duration of futures contract, and play your spread bets on weekly basis and key date to watch out for Nov 30. Got to make some daily close and towards end of the week there is always some profit taking