Well-known energy trader Mark Fisher says the faltering oil market is even to bottoming out, and investors can be relatively sure that crude futures commitment jump by $10 rather than drop by that amount.
“I suppose there’s limited downside,” the MBF Clearing founder and CEO told CNBC’s “Secured Money: Halftime Report” on Monday. “If you ask me what the next $10 is, is it up or down? I contemplate it’s up.”
That move may not come for another month or two, according to Fisher.
Unrefined futures have tumbled more than $20 a barrel from their four-year highs wear month, plunging into a bear market. U.S. crude was trading excessive at almost $57 on Monday, while Brent crude was roughly outright at under $67 a barrel, following three straight days of advances for both benchmarks.
Fisher said he believes both surging rustic supply and fears over deteriorating oil demand contributed to the pullback. Degree, he reiterated his view that the worst of the sell-off is due to momentum trading and hedge endows dumping crude futures in order to buy natural gas, which has surged close by 45 percent over the last month.
“When that swop is finally unwound and when … you start seeing … some more nullifying stats with no negative price action that’s … when you’d lack to buy the dip in crude,” Fisher said.
In general, Fisher said “bad news, considerate price action” is an indicator to buy.
As an example, Fisher pointed to news bangs that the CIA believes Saudi Arabia’s crown prince, a close affiliate of the Trump administration, ordered the killing last month of Washington Picket columnist and U.S. resident Jamal Khashoggi. Saudi Arabia is the world’s top oil exporter.
Fisher express if the United States finds that the crown prince was complicit in the slaying, and the shop dips intraday but rallies into the end of the session, that would be a device to buy oil.