Record U.S. Crude Inventory + Non-Commercials’ Record WTI Net Longs – Bulls Face Crude Reality

Ten and counting.  That is the number of weeks spot West Texas Intermediate crude ($53.78) has now gone flat. Oil bulls hope this is consolidation before another leg higher.  Since oil bottomed at $26.05 on February 11 last year, it … Continued

OPEC Wants Higher Price But Not High Enough To Aid U.S. Shale

Over the weekend, non-OPEC producers agreed to cut crude output by 558,000 barrels per day, of which Russia would reduce by 300,000 b/d.  This followed OPEC’s November 30 decision to cut output by 1.2 million b/d. The deal goes into … Continued

As Goes Crude Oil, So Go Stocks Near Term

posted in: Commodities, Equities, Technicals | 0

Crude oil sits at a critical juncture.  Depending on which way it breaks probably decides stocks’ path of least resistance near term. Last week, OPEC announced its commitment to cutting output to between 32.5 million barrels per day and 33 … Continued

Repercussions If WTI Is Able To Build On Monday’s Huge Intra-Day Reversal

Quite an anti-climax!  Sunday’s Doha oil talks, that is.  Even more so is how markets reacted on Monday. The much-hyped and much-hoped-for agreement for an output freeze/cut failed to materialize.  Crude oil had rallied strongly into these talks, so a … Continued

Crude Oil ↓ 62%, Rig Counts ↓ 66%, Yet Production And Stocks Near All-Time Highs

In the past year and a half, crude oil has gone through a lot. It is not often a commodity of oil’s significance drops 61 percent in nine months.  Yet that is what happened to spot West Texas Intermediate crude … Continued

Markit expects Dec U.S. private payroll growth of sub-200k; oil to blame?

posted in: Economy | 0

Markit forecast of sub-200k private payroll growth this month a surprise U.S. unemployment claims, near historical lows, need catalyst to begin to move up Oil-heavy states are yet to see jobs impact of drop in crude, but only a matter … Continued

OPEC/shale oil brinkmanship begins — who will blink first?

posted in: Credit, Economy | 0

2014 on track for 3rd successive year of $300bn-plus high-yield issuance; energy 15% of junk market By not cutting 30mn bpd production target, OPEC ready to lock horns with shale oil As both sides play game of ‘who will blink … Continued