If OPEC remains fixated in inflating oil prices, they will simply hurt their customers in a weakening global growth environment.
What oil prices are showing is simply that we were living a mirage of bullish estimates and artificial inflation of prices, and it lasted very little.
If you want to be bullish oil from here you need to believe in three things:
- OPEC greed (probable)
- Global demand growth rising (improbable)
- Rates falling and leveraged bets increasing (unlikely)
The reflation trade never existed. It was simply part of the fallacy of synchronized growth, and it is dissipating alongside the central-planned myth of GDP growth by design.