This Time, Don't Fall For It Supply and Demand Don’t Drive Oil Prices

By Elliott Wave International

OPEC cuts production. International conflict blocks key shipping routes. A hurricane shuts down offshore rigs.

Conventional wisdom says prices should rise — and keep climbing.

But does the evidence support this assumption?

Take Hurricane Katrina in 2005. It shut down 95% of Gulf oil production — a quarter of total U.S. output.

So what happened to oil prices?

They fell over 20% in the three months that followed.

You can’t rely on supply and demand to forecast oil prices. That’s not how markets work.

Want to know what does drive oil prices?

In 2016, @elliottwaveintl’s Robert Prechter showed decades of market data that prove supply and demand do not regulate oil prices. More importantly, he revealed a method for forecasting oil with striking accuracy.

For a limited time, you can watch Prechter's 35-minute presentation — "What Really Drives Oil Prices?" — to find out.

Don’t miss this one. Viewers call it one of the best market presentations they’ve ever seen.

EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.