WTI oil production chart - WTF chart of today

in wti •  7 years ago  (edited)

Today I want to present you the chart of the day. It is the alltime WTI production chart in the USA in million barrels. When I saw this, I was startled at first, because it doesn't make much sense.

WTI.JPG

This chart belongs to N-TV.de, a german news site like CNBC.

https://www.n-tv.de/wirtschaft/Zweites-US-Olwunder-bringt-Opec-in-Noete-article20282848.html

As you can see, there are clearly visible elliott wave structures. But wait a minute... This is not a tradeable market like BTC or the DOW. It is just the overall WTI production output of the USA. So why is the output running in wave structures?

The only explantion I have is, that because WTI market moves in elliott wave structures. So when the WTI price is high, it is profitable to produce as much oil as possible. When the price is low, it is not as profitable. So my hypothesis is, that because of this correlation of production output and price, the production output chart also shows elliott wave structures like 3 steps forward, two steps back. This chart shows nearly 100 years of output data, so it can't be a coincidence.

I think this is astonishing... I guess the fractal nature can be found in anything this universe has to offer.

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Great post...
Thank for sharing information @ew-and-patterns

Luar biasa

nice for wri
thanks for sharing

Hehe..The only thing I could garner from this is that the oil and gas production analysis charts are taking the form of cryptocurrency charts as well. Same patterns and all.
Nice observation there.

Thanks for pointing this out. I had never considered how these would be so parallel. If I could somehow apply this type of analysis to my personal relationships, I could ride the fractal waves to great comfort and joy.

lol interesting!

What is perhaps even more interesting is getting near the top of wave 5!

I find it incredible also, and am currently writing an article on how elliot wave theory is replicated in our personal lives and events. My theory was that Fibonacci is so closely linked to EWT, and golden ratios are almost everywhere you look in life, so can EWT somehow be applied theoretically to our own lives!

Im sure its not just another coincidence you have found this graph. It really is remarkable!

Wow! that's some great observations. I checked out some fundamentals some time ago and it seemed like oil prices will go down, stay down for a while and skyrocket. I've heard that many oil producers went under because of the low prices. So we are getting ready for a correction. The demand for oil is going to increase especially from the developing countries. So basically we are going to be seeing new ATH for oil prices.

I just hope Venezuela government will go bust before that happens.

I don't think the new damand for oil is keeping up with the production increase. We can already see huge inventory build ups, which will ultimately be bearish for oil. The market is driven by huge amounts of speculators though, so you never know. For americans , it also makes perfect sense to get more marketshare and crush opec by becoming the worlds largest producer as long as prices stay on a high level. When the price starts to drop hard, investors will take the money earned and run for the hills.

This kind of a bust is bound to make make many companies go bankrupt. It's already happening. At some point inventories will be emptied and there won't be enough producers left. This should drive the oil prices high.