OIL -Downward pressure today came due to 3 reasons per FBN ( Risk and Reward with Deirdre Bolton) guest, Don Flock who reported:
-Today, Saudi Arabia reported it has a $100B deficit. So presumption is that they will not cut production
- Japan hit a 46 year sales low on amount of oil it is purchasing. (biggest oil purchaser)
- Iran has export eagerness. Plans to get to pre-sanction levels.
Last I heard a few weeks ago, Iran plans to increase production in January. Not sure exactly when.
I again heard there is a $20 per barrel expectation for oil. On Risk and Rewards, Jonas Max Ferris (Maxfund.com editor) and Ty Young (Ty Young Wealth Management) both stated oil will go to $20 this coming year. Ty believes market it will go down at beginning of year to match growth rate of economy before oil goes up. He would not put more money in market. So this is the third time I have heard the $20 figure. Two weeks ago Liz Clamen reported Goldman Sachs' $20 call. I have also heard$ 33-34 a couple weeks back.