Reuters sources on the latest on oil sanctions:
EU proposes ban in one month's time of shipping, financing and insurance services for the transport of Russian oil worldwide A ban on Russian oil would be effective in six months, with no gradual phase-out, both for the spot market and existing contracts Bulgaria will seek an exemption if the EU agrees, according to Deputy PM Vassilev. Bulgaria gets 100% of its oil from Russia.
A separate report citing a source said there was no immediate deal today but EU envoys will meet again on Thursday.
This is more-aggressive than had been assumed, especially after reports yesterday said there was discord. I still wonder if this falls apart due to Hungary or someone else blocking it.
Meanwhile, the API data yesterday showed a mammoth draw in oil + products:
Crude -3479k Gasoline -4500K Distillates -4457K Add in the SPR drawdown
Drawdown
In financial trading, the drawdown represents the amount of money a trader can lose or has lost, following a series of losing trades. This is measured from the high of the trader’s capital to its low, over a given period of time. This is usually expressed as a percentage of a trader’s account. The current drawdown is simply the amount of money a trader’s balance has been reduced by in a given time, without necessarily closing out at that point.For example, if a trader placed an initial deposit of $4000, and started off suffering losing trades with his equity falling to $3000, in this case the trader’s drawdown would be $1000. When devising or refining a system, one of those most important statistics is the maximum drawdown. Traders typically back-test their systems in order to see what the maximum drawdown would have been over a specified time period. Assessing historical maximum drawdown by way of back-testing helps to inform the trader concerning the sustainability of the trading system. Why Drawdowns Matter for TradersDrawdowns are a necessary part of trading, since it’s impossible for a trader to have continuously winning streaks of course. The most successful traders are those who can devise a trading strategy which allows one to be able to handle long periods of losses, because these periods can and do occur. Any trader unprepared for such a scenario is putting their account at great risk. Thus, one of, if not the most important facet of trading is risk management, and knowledge of a strategy’s maximum drawdown facilitates in determining a particular investment's financial risk.Despite extensive testing of a system’s historical drawdown, it’s never going to be sufficient proof that even further extended periods of losses won’t occur.
In financial trading, the drawdown represents the amount of money a trader can lose or has lost, following a series of losing trades. This is measured from the high of the trader’s capital to its low, over a given period of time. This is usually expressed as a percentage of a trader’s account. The current drawdown is simply the amount of money a trader’s balance has been reduced by in a given time, without necessarily closing out at that point.For example, if a trader placed an initial deposit of $4000, and started off suffering losing trades with his equity falling to $3000, in this case the trader’s drawdown would be $1000. When devising or refining a system, one of those most important statistics is the maximum drawdown. Traders typically back-test their systems in order to see what the maximum drawdown would have been over a specified time period. Assessing historical maximum drawdown by way of back-testing helps to inform the trader concerning the sustainability of the trading system. Why Drawdowns Matter for TradersDrawdowns are a necessary part of trading, since it’s impossible for a trader to have continuously winning streaks of course. The most successful traders are those who can devise a trading strategy which allows one to be able to handle long periods of losses, because these periods can and do occur. Any trader unprepared for such a scenario is putting their account at great risk. Thus, one of, if not the most important facet of trading is risk management, and knowledge of a strategy’s maximum drawdown facilitates in determining a particular investment's financial risk.Despite extensive testing of a system’s historical drawdown, it’s never going to be sufficient proof that even further extended periods of losses won’t occur.
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