Hey you too can now blame the “fake news” phenom for everything. Oil stocks suck, blame fake news. Your ATM states insufficient funds, blame fake news. Tell your boss to ‘F*ck Off,” blame fake news. – PB/TK
Bear Market for Oil Caused by ‘Fake News,’ Says Raymond James – By Luke Kawa / July 5 2017
Analysts at Raymond James invoked one of U.S. President Donald Trump’s favorite phrases to explain oil’s descent into a bear market — and bolster their case for why crude can rise to as much as $65 a barrel.
Conventional wisdom holds that resilient U.S. shale drilling, underwhelming progress towards OPEC’s goal in slimming global oil inventories, and output recoveries from nations exempt from the deal to curb production helped push crude down more than 20 percent from recent peaks. But according to analysts led by J. Marshall Adkins — noted oil bulls — the bad times for oil can be chalked up to “fake news” that amplified the downside.
“The recent collapse in oil prices was triggered by a breakdown in the technical charts but fueled by the ‘negative feedback loop’ of bearish headlines that usually follow price declines,” the analysts wrote in a July 3 note to investors. “Some oil price headlines have been misleading, or outright wrong, and they have distracted investors from what we believe is fundamentally a bullish overall picture.”
Crude futures rose 1.7 percent Monday to $46.81 a barrel, for an eighth straight advance after settling below $43 a barrel on June 21. While prices surged last week, oil in New York and London still posted a monthly loss in June after tumbling into a bear market on concerns that rising global supply will counter cuts from OPEC and its partners.
Continue to Bloomberg.com article: https://www.bloomberg.com/news/articles/2017-07-05/bear-market-for-oil-caused-by-fake-news-says-raymond-james
