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Is ‘Oil God’ Andy Hall The Latest Victim Of “Fake News”?

Is ‘Oil God’ Andy Hall The Latest Victim Of “Fake News”?

zerohedge.com / by Tyler Durden / Jul 7, 2017 11:36 AM

Raymond James’ J. Marshall Adkins invoked one of President Trump’s favorite phrases to explain oil’s plunge, and to excuse his bullish bias (that crude can rise to as much as $65 a barrel).

As Bloomberg notes, 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 Adkins – a noted oil bull – 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.”

Concerns have been overblown, the Raymond James analysts argued, saying trends pertaining to U.S. inventories, production and gasoline demand have been misinterpreted. They put out a list of “myths” that explain the downturn and set out to debunk them in arguing that crude can rise about 45 percent from current levels.

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