Oil

Rig count has long been a great proxy for oil production. Simply put, the more oil rigs, the more oil they can pump. However, all of that has changed now.

Oil demand isn’t going away anytime soon. In fact, it’s growing. And producers have to find those additional supplies somewhere.

When prices become unaffordable, they’ll come down. And this week, traders got another reason to second-guess the world’s appetite for high-priced crude oil.

Monitoring the large speculators is not a precise timing indicator. But it’s a valuable piece of information to determine when it’s the right time to bet against the crowd.

In November 2016, OPEC announced cuts to oil production. Now, a year and a half after the production cuts, the organization has accomplished its goal.